Social Security Cap?

Worried in FL · 02-07-2008, 07:18 PM

Is there a cap on how much Social Security Income you can receive back monthly when you are 62 or older when you take it? For example: Someone worked more than 35 years and maxed out how much was paid in each of those 35 years?

I have a friend who says he will get $2200. in SS benefits at 62? Is that possible?

crazy connie · 02-07-2008, 08:26 PM

Yes. There is a monthly/annual and household max based on dependants. Check at the SS website. I know I won't be getting that much, but I quit contributing at 50 and that is ok with me.

Also, the SS calculator factors in COLA. How old is your friend?

SecondCor521 · 02-07-2008, 08:36 PM

There is a SS cap, according to 2008 Social Security Changes: Press Office, of $2,185 per month (2008 figure).

For a decent explanation of how a benefit is figured, see Social Security Statement: How Your Benefit Is Figured

2Cor521

EngineeringMyFinances · 02-08-2008, 07:09 AM

There is no direct cap on retiree benefits. However, since the income on which SS tax and upon which benefits is capped, their is an indirect cap.

The $2185 is for a retiree at normal retirement age (about 66 for those retiring now) who has earned the maximum taxable income for 35 years.

Someone retiring at 62 will get a reduced benefit (by a factor of 25%). So no way is an individual retiring at 62 going to get a $2200 benefit.

Lazarus · 02-08-2008, 08:35 AM

The quick calculator on the Social Security page shows me getting $2485 in inflated dollars at age 62. I am 50 now. Todays dollars $1619 I'm sure it presumes I will work every year till then.

SecondCor521 · 02-08-2008, 01:51 PM

Quote:

Originally Posted by EngineeringMyFinances

There is no direct cap on retiree benefits. However, since the income on which SS tax and upon which benefits is capped, their is an indirect cap.

The $2185 is for a retiree at normal retirement age (about 66 for those retiring now) who has earned the maximum taxable income for 35 years.

Someone retiring at 62 will get a reduced benefit (by a factor of 25%). So no way is an individual retiring at 62 going to get a $2200 benefit.

I thought the income cap had on SS had only been around since 1994 (?), so someone who had work history before that could exceed the $2185 number. I don't really know, though.

2Cor521

02-07-2008, 07:18 PM	#1
Worried in FL Dryer sheet wannabe Join Date: May 2006 Posts: 17	Social Security Cap? Is there a cap on how much Social Security Income you can receive back monthly when you are 62 or older when you take it? For example: Someone worked more than 35 years and maxed out how much was paid in each of those 35 years? I have a friend who says he will get $2200. in SS benefits at 62? Is that possible? Last edited by Worried in FL; 02-07-2008 at 07:25 PM.

02-07-2008, 08:36 PM	#3
SecondCor521 Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Boise Posts: 1,331	There is a SS cap, according to 2008 Social Security Changes: Press Office, of $2,185 per month (2008 figure). For a decent explanation of how a benefit is figured, see Social Security Statement: How Your Benefit Is Figured 2Cor521 __________________ "At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.

02-08-2008, 07:09 AM	#4
EngineeringMyFinances Recycles dryer sheets Join Date: Aug 2007 Location: Midwest Posts: 109	There is no direct cap on retiree benefits. However, since the income on which SS tax and upon which benefits is capped, their is an indirect cap. The $2185 is for a retiree at normal retirement age (about 66 for those retiring now) who has earned the maximum taxable income for 35 years. Someone retiring at 62 will get a reduced benefit (by a factor of 25%). So no way is an individual retiring at 62 going to get a $2200 benefit. __________________ Engineering My Finances Blog

02-08-2008, 08:35 AM	#5
Lazarus Recycles dryer sheets Join Date: May 2005 Posts: 409	The quick calculator on the Social Security page shows me getting $2485 in inflated dollars at age 62. I am 50 now. Todays dollars $1619 I'm sure it presumes I will work every year till then. __________________ My Dog eats dryer sheets.

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02-07-2008, 08:26 PM	#2
crazy connie Full time employment: Posting here. Join Date: Feb 2006 Posts: 708	Yes. There is a monthly/annual and household max based on dependants. Check at the SS website. I know I won't be getting that much, but I quit contributing at 50 and that is ok with me. Also, the SS calculator factors in COLA. How old is your friend?

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