In October, the good news was released for seniors on Social Security as they are set to have an increase in their benefits and would be getting an 8.7% cost-of-living adjustment (COLA) in 2023.
The Maximum Social Security
COLA in 2023 is the largest boost to come around in decades to be given to seniors worth to seniors and it’s not a small amount of money. To qualify for the maximum Social Security benefit, some things must meet like working at least 35 years, Earning an income for at least 35 years that’s equal to or beyond the wage cap each year, and Delaying your Social Security filing until age 70.
This Is How The Social Security Calculated
Social Security benefits are determined based on the 35 highest-paid years of employment and annually there is a wage limit put into place that regulates how much income gets taxed for Social Security purposes.
For this year, the pay limitation is $147,000 and it will increase for the following year to $160,200. Therefore, to get the highest possible monthly benefit out of Social Security, one must earn enough money for 35 years to meet or exceed the wage limits.
Additionally, delaying the claim, age until age 70 will have the highest Social Security benefits and it will boost the benefit and potentially bring it up to $4,555.