<span data-sheets-hyperlinkruns=”{“1″:85,”2″:”https://faq.ssa.gov/en-us/Topic/article/KA-01897”}{“1″:106}” data-sheets-textstyleruns=”{“1”:0}{“1″:85,”2”:{“2”:{“1″:2,”2″:1136076},”9”:1}}{“1″:106}”>Each year, Social Security has a maximum benefit it pays out to workers who are receiving retirement income. But this max benefit is not the same for all retirees.
<span data-sheets-hyperlinkruns=”{“1″:85,”2″:”https://faq.ssa.gov/en-us/Topic/article/KA-01897”}{“1″:106}” data-sheets-textstyleruns=”{“1”:0}{“1″:85,”2”:{“2”:{“1″:2,”2″:1136076},”9”:1}}{“1″:106}”>In 2022, those who claim benefits at age 62 have a maximum benefit of just $2,364, while those who claim benefits at age 70 could see checks as high as $4,194.
This is a huge discrepancy, and it’s helpful to understand why there is such a big difference in the maximum amount of money Social Security can provide to varying groups of retirees. Knowing why can help you make much more informed choices about the best age to file for your first Social Security check.
Why is there a maximum Social Security benefit?
The first big question you may have when considering why there are different maximum benefits is, why is there a max benefit in the first place? After all, Social Security pays out based on average wages that people earn over their lifetimes, so why do monthly checks cap out at $2,364, $4,194, or any number at all?
The simple answer is because of the wage base limit. See, not all income that is earned…
