As you plan to retire, one of the most important things to know is how much you’ll receive from Social Security each month. You can use your my Social Security account to get estimates for yourself. (If you don’t have an account and need one or need to visit your account, use this link: www.ssa.gov/myaccount/.)
Once you have an estimate for yourself, you may wonder how your estimate compares with other workers. What is the highest possible retirement benefit being paid in 2018 for someone retiring at full retirement age? $2,778.
How does someone earn the maximum amount? Social Security does not tax earnings above a certain level each year. For example, the highest taxable amount in 2018 is $128,400. The amount has risen over the years. Since we average together your highest 35 years of earnings, you would have had to pay the F.I.C.A. tax at the highest F.I.C.A. rate 35 years straight back before retirement to receive the highest amount.
What has more meaning for many people is the amount of the average benefit. What is the average retirement benefit in 2018? The average retirement benefit in 2018 is $1,404.00.
While maximums and averages may be of interest to you, the most important figure to know is your own benefit amount and how it fits in to your own personal financial plan.
Since your monthly benefit amount is based on when you choose to draw it, be sure and visit www.ssa.gov/pubs/EN-05-10147.pdf to read this informative publication about the factors to consider when deciding when to retire.