Social Security provides Americans a source of income after they retire or if they can no longer work due to a disability. Below is the guide of how much you can get from Social Security if you make $100,000 or more.
A typical six-figure earner could get around $2,000 per month. The maximum possible amount can go as high as $4,000, but only a handful of retirees are eligible to get such an amount. To have an idea of how much you can get, you must understand that there are many factors you need to consider. Some of the factors are the amount of time you earned such money and your age when you retire, Fool.com reported.
For example, if you earned $100,000 only later in life, you did not contribute much to the Social Security pool. So you should not expect a lot of monthly benefits from Social Security. If you retire at 70 years old instead of the 62-year-old eligibility, you will get more.
For a more concise illustration, if you will retire at the age of 65 and you’ve been earning $100,000 for the past 40 years, you can get $2,000 per month.
If you retire at the age of 65 and have an income of $36,000 per year for the past 40 years, you could get around $1,000 monthly benefits from Social Security. These are just estimated as the average monthly Social Security check last year was at $1,544, and the maximum allowed amount is at $3,100 for those who retired at the age of 60. If you retired at age 70, the maximum monthly amount you can collect is $3,900.
About the factor of age in claiming your Social Security monthly benefits, Neha Bairoliya, an assistant professor at the University of Southern California and co-author of a recent paper examining Social Security claiming decisions, said that claiming before one’s full retirement age results in a permanently reduced benefit.
“They think that claiming at age 62 is the same as claiming at age 65,” she said. Social Security has a penalty for claiming your retirement benefits earlier than the prescribed age. A benefit is reduced 5/9 of 1 percent for each month before full retirement age, up to 36 months. If the number exceeds 36 months, you can see a reduction of 5/12 of 1 percent per month.
If you retire at age 62, your benefit will be reduced by as much as 30 percent. It is best to claim at the age of 70 to enjoy the full benefits.