Here's the most you can earn from Social Security in 2024

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Seniors may get a check as high as $4,873 from Social Security, but no retiree's payment can be bigger than that in 2024. Here's why.

It’s a common misconception that high earners receive larger Social Security checks than those with more modest incomes.

In reality, Social Security benefits have a cap, meaning that even millionaires and billionaires receive the same maximum monthly benefit as everyone else. For 2024, that maximum is set at $4,873 per month. Here’s a breakdown of how this cap works and why it exists.

How Social Security Benefits are Calculated

Social Security benefits are determined by what’s known as the Primary Insurance Amount (PIA). This amount is based on your highest 35 years of earnings, adjusted for inflation.

To receive the maximum possible benefit, you need to have earned the highest taxable income allowed each year for all 35 years.

One key factor in maximizing your benefits is to delay claiming them until age 70. By doing so, you will take advantage of delayed retirement credits that increase your PIA.

However, there’s a limit to how high these benefits can go due to the Social Security wage base limit.

The Wage Base Limit

Each year, there is a cap on the amount of earnings that are subject to Social Security taxes. In 2024, this cap is $168,600. Earnings above this amount are not taxed for Social Security purposes and do not count toward the benefits calculation.

As a result, the maximum benefit you can receive is constrained by this cap.

Achieving the Maximum Benefit

To reach the highest benefit, you should earn the maximum taxable amount for 35 years and delay claiming your benefits until age 70. If you achieve this, you will receive $4,873 per month.

If you have any years with earnings below the cap or if you claim benefits before age 70, your benefit will be lower.

Given the difficulty of meeting these requirements, very few retirees will receive the maximum benefit. To get a clearer picture of what you might receive, you can use the tools available at mySocialSecurity.gov.

This will help gauge whether you need additional savings to ensure a comfortable retirement.

Understanding these aspects of Social Security can help you plan better for your retirement and supplement your income as needed.