MIAMI.- Social Security delivers checks each month to millions of low-income seniors and people with disabilities, for amounts that depend on the beneficiaries meeting certain guidelines.
For 2024, after the increase in the Cost of Living Adjustment (COLA), the average payment for workers increased to approximately $1,907 per month for an individual and $3,303 for couples filing their taxes jointly.
However, some have the possibility of increasing their income by reaching the maximum figure of $4,873 per month granted by the Social Security Administration (SSA), to cover their expenses due to concern about the constant increase in the cost of living.
To get the maximum amount from SSA, eligible people must take steps in their retirement that depend on three requirements that determine the amount they will receive.
These include the number of years worked, the beneficiary’s retirement age, and the income the person received throughout their working life.
How to achieve a Social Security pension of $4,873?
The federal entity that has distributed the sum of around US$1.5 trillion in benefits so far this year, determines whether it is legible for disbursement in a way that, although complicated, is not impossible.
Beneficiaries must have the minimum required age, which is 62 years, have worked a certain number of years to accumulate the 40 work credits required by the SSA, have contributed and finally have paid the corresponding taxes.
The years of work
It is important for retired workers to know that the financial assistance program takes into account the 35 years with the highest earnings in their work history to decide the amount of their benefit.
So to be eligible for the maximum benefit you must have worked more than 35 years and earn or exceed the salary cap in each of those years. Which will help the number of years worked offset any possible decrease in your income level.
Regarding salary history, it is the second step to obtain the check with the maximum amount allowed by Social Security. To reach this figure, recipients’ salaries must exceed the annual salary cap established by the SSA, which this year is up to $168,600.
Since the amount can vary each year, workers should be aware of increases and keep their salary above the maximum amount taxable for at least 35 years of work.
Retirement age
To receive the maximum benefit check, it is essential that people have reached full retirement age, which depending on the year of birth is 66 or 67 years.
Additionally, if they want to receive more money they must meet the minimum age required for the application, which is 70 years old. Those who delay the retirement age until that age obtain more than 100% of the payments every month, since for each year that passes after full age it increases by 8%.
Pensioners who have worked less than 35 working years and want to request their retirement early at age 62, get $2,710 dollars each month, since the SSA subtracts 30% of the benefit.
Not so beneficial
Although receiving a check for $4,873 dollars can be very beneficial for pensioners, it can also have some negative characteristics.
One of them is that the more money you receive from the SSA, the more taxes you will have to pay, based on your combined income.
Another factor that is not so attractive is the fact that after a payment greater than the salary cap is deposited, the benefit that workers will receive would only be 33% of their salary before retiring.
For 2024, the amount is $58,476 compared to the salary cap of $168,600. Likewise, if the pensioner does not have savings and maintains a standard of living proportional to his previous salary, the social program cannot cover the expenses.
@Lydr05
Source: With information from La Opinion, Marca Usa y Gestión
