In any of the United States territories, the new Social Security payment will reach a new maximum starting in January 2025. This is thanks to the Cost of Living Adjustment (COLA), so all Americans with an accepted benefit will be able to enjoy a little extra money very soon.
However, those who have not yet applied for a Social Security retirement check have the possibility of maximizing the benefit to reach a larger check each month. Thus, it is possible to be close to $5,180 per month, although it is true that it is difficult to have the maximum figure. Just following three steps will be enough to be able to enjoy a new benefit.
How to get the maximum Social Security in 2025?
The truth is that there are three steps to follow in order to reach this maximum figure. If we do not reach the maximum amount, we can reach a maximum amount within our means. It all depends on the extent to which we can maximize the benefit.
In order to carry out this strategy, we must take into account the retirement age, the years worked and the salary during those years. Each of the sections has its own rules, so it is a good idea to know them in order to maximize Social Security as much as possible.
Retirement age
Although it is true that when we turn 62 we will be able to get a Social Security check for retirement, it is also true that in this case we will get a much better check than the one we have contributed. By applying for Early Retirement Age, we will lose about 30% of our retirement check.
For that reason, the closer we are to age 70 when we apply for Social Security, the better. At age 67 we will have the Full Retirement Age, but if we wait a little longer and retire at 70 the check will reach much higher figures.
Years Worked
Getting a minimum of 40 work credits is fine if we are looking to get any benefit regardless of the amount. But in order to maximize the check we must keep in mind that we are going to have to work a minimum of 35 years. Any year not worked below that figure will subtract a lot from our monthly check.
If you work more than 35 years, the Administration will calculate your Social Security check with the highest 35 years of salary. So try to keep those years worked in mind when planning your retirement.
Salary before Social Security collection
Salary is also key to getting a good Social Security check. The higher your salary, the more Social Security contributions and, therefore, the bigger your retirement check in the future. This will mean that Social Security retirement checks could reach the maximum of $5,180 per month by 2025.
Either way, we must combine these three elements in order to get the biggest check possible. The ideal is to apply for Social Security at age 70 after working for 35 years at a high salary. If we do not get the biggest check, we will get a good benefit.