Ask Mary Beth: Money Q & A |
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Maximum Social Security Benefits
I have received a salary of $250,000 for each of the past eight years. If I apply for Social Security benefits at the age of 62, what is the maximum monthly benefit that I can receive?
Mary Beth answers:
Your Social Security retirement benefits are based on your entire working history--not just your highest earning years. However, higher lifetime earnings will result in higher benefits.
While I cannot tell you what your specific retirement benefit will be, I can tell you that the highest retirement benefit issued by Social Security is $1,342 per month for those retiring at 65 in 1998. Those electing early retirement at 62 will see their benefits reduced by 20 percent to a maximum of $1,073.60.
To find out what your exact retirement benefit will be, you can request a Personal Earnings and Benefit Estimate statement from the Social Security Administration by calling toll-free (800) 772-1213 or visiting the SSA's Web site.
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