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Social Security Cap?
Old 02-07-2008, 07:18 PM   #1
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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?
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Old 02-07-2008, 08:26 PM   #2
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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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Old 02-07-2008, 08:36 PM   #3
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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

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Old 02-08-2008, 07:09 AM   #4
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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.
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Old 02-08-2008, 08:35 AM   #5
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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.
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Old 02-08-2008, 01:51 PM   #6
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Quote:
Originally Posted by EngineeringMyFinances View Post
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.

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