Ask Terry Questions Social Security upper limits

Social Security upper limits

By Terry Savage on December 20, 2023 | Financial Planning / Retirement

Hi Terry- I’m an avid listener but never heard this question asked before. Are there upper limits on how Social Security benefits based on income? Meaning, as a high-earner, are my SSA benefit maxed at any certain income point? I understand the other rules for the highest years of earnings, FRA, annual increases for waiting until age 70, etc. Thank you in advance.

Terry Says

Your Social Security benefit is a complex calculation. Here is a link to the best explanation, one I have used several times:

But to try to answer your question more specifically — There is NO maximum amount of SS you can receive,and your benefit will grow annually as it is adjusted for inflation.
But since SS taxes are paid only up to a limit each year (and earnings are not taxed above that annual limit, which has risen gradually over the years), then your max benefit would be the same as anyone else who had 35 years of maximum earnings.
YOu may have earned more money overall than some other person in the same category, but your benefit would be the same!
Hope that makes it clear.



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