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02-07-2008, 06:18 PM
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#1
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Dryer sheet wannabe
Join Date: May 2006
Posts: 19
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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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02-07-2008, 07:26 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 1,183
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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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02-07-2008, 07:36 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,865
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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
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.
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02-08-2008, 06:09 AM
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#4
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Recycles dryer sheets
Join Date: Aug 2007
Location: Midwest
Posts: 109
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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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02-08-2008, 07:35 AM
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#5
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Texas
Posts: 1,038
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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.
__________________
In theory, theory and practice are the same. In practice, they are not.
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02-08-2008, 12:51 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,865
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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.
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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
__________________
"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.
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