Social Security Cap?

[Worried in FL]

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]

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]

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]

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]

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]

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