How Much Money Can You Make If You Draw Social Security At Age 62

The historic period at which you file for Social Security benefits will take a major impact on the amount you receive each calendar month. While you can receive larger monthly payments by delaying benefits, many workers choose to file as early as possible at age 62. That can be a smart strategy in many cases, and there are several advantages to claiming early.

You can even so earn a substantial corporeality in benefits by claiming early on, too. In 2022, the maximum you can collect by filing at age 62 is $two,364 per month -- which is significantly higher than the $1,557 per month average do good corporeality. Here'due south what it takes to attain the maximum monthly payments.

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How the length of your career affects your benefits

One of the most important factors when information technology comes to your benefit amount is the number of years you've worked. Most people become eligible for Social Security retirement benefits once they've earned income for 10 years, but you'll need to piece of work for at to the lowest degree 35 years to receive the maximum benefit corporeality.

When calculating the amount y'all'll receive, the Social Security Administration takes an average of your wages throughout the 35 highest-earning years of your career. That number is so adjusted for inflation, and the upshot is the amount y'all'll collect if you claim at your total retirement age (FRA).

If you work more than 35 years, only the years with the highest earnings volition exist counted -- which could increase your average and result in a higher do good amount. If you work fewer than 35 years, however, you'll have zeros added to the equation, which will bring down your average.

How much you'll have to earn to reach the maximum benefit amount

Your income is another crucial cistron in reaching the highest benefit amount. The more than you're earning, the more y'all'll exist eligible to collect in benefits -- upward to a certain point.

Once you surpass the maximum taxable earnings limit (which is the highest income that's subject to Social Security taxes), a higher income won't effect in boosted benefits. To earn this maximum benefit corporeality, then, you'll need to reach the maximum taxable earnings limit.

This limit changes from twelvemonth to twelvemonth to account for inflation. This yr, the limit is $142,800 per year, simply in 2022, information technology will increment to $147,000 per year. If your goal is to collect the maximum $2,364 per month at age 62, you'll demand to be reaching these limits consistently throughout your career.

What if your earnings are falling curt?

If you're earning enough to reach the maximum benefit corporeality, that's fantastic. Merely the average worker volition struggle to reach the income limits, and not everyone can afford to work 35 years before claiming.

The skilful news is that if yous're willing and able to filibuster benefits past age 62, you can earn closer to the maximum do good corporeality.

Say, for example, y'all have an FRA of 67 years quondam, and by claiming at that historic period, you lot could receive $1,600 per month. If y'all were to claim early on at 62, your benefits would be reduced past xxx%, leaving yous with $1,120 per calendar month. Merely if you lot delay benefits until age 70, you'd receive your full benefit corporeality plus an extra 24%, or $1,984 per month.

Not everyone will exist able to look until age lxx to file for benefits. Merely if you're unable to reach the maximum benefit corporeality, delaying Social Security is one of the best and easiest ways to heave your benefits.

Source: https://www.fool.com/retirement/2021/10/22/claiming-social-security-62-maximum-you-can-earn/

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