Beginning August 2024, the maximum benefit payable per month to eligible persons will be $4,873. This huge amount is part of the SSA’s program on financial support to retirees, the disabled, and survivors. In this regard, it is essential for one to know who would be entitled to such a maximum benefit and the schedule of payments for people who are planning for retirement finance.
Eligibility criteria for maximum benefits
Some of the major factors that have to be taken into consideration for arriving at the highest Social Security benefit of $4,873 include the following:
- Retirement age: The maximum benefit is payable at age 70. This is the age at which maximum benefits would be awarded in order to bring out the most earned amount in a lifetime.
- Earnings history: The amount one will collect for their Social Security benefit is inversely affected by their earnings history. To get the maximum benefit, a worker has to earn the maximum taxable income for at least 35 years. In 2024, that maximum taxable earned income was $168,600.
- Claiming benefits: Without other unusual factors, anyone can start claiming his or her Social Security benefits from as early as age 62. Doing so will decrease the benefit amount because full retirement age has not yet been reached. For those born in 1960 or later, the FRA is 67 years. Thus, starting to claim at FRA leaves a benefit payment of $3,822 monthly, while if claimed at 62, that reduces the benefit to about $2,710.
August 2024 payment schedule
Social Security is paid by birth date. Shown below are the dates one will get their Social Security payment for August 2024 according to an individual’s birth date:
- Wave one: Those born on the 1st through the 10th of the month will get their check by mail on August 9, 2024.
- Wave two: Those people born from the 11th through the 20th, checks through the mail on August 16, 2024.
- Wave three: Those beneficiaries born between the 21st and the 31st, the money will be paid out on August 23, 2024.
This type of structured payment allows all the beneficiaries to get their money in due time. Vast majority derives most of their income from Social Security.
Why Social Security Benefits are important
Social Security is providing a foundational, financial bedrock to millions of Americans, especially retirees. Here are some facts about its importance:
- Economic security: For most elderly, the benefits accruing from Social Security make up a huge percentage of their income on a monthly basis. Nearly 9 out of 10 people aged 65 years and above receive Social Security; therefore, it plays an incredibly vital role in keeping old-age poverty at bay.
- COLA ( Cost of Living Adjustments): The SSA increases benefits annually to keep pace or parity with inflation. In 2023, the record increase of 5.9 percent, the highest in more than forty years, was tailored to help cushion spiraling living costs for beneficiaries.
- Funding: Social Security primarily gets its funding through payroll taxes via FICA. Both the employee and employer pay 6.2 percent each for the long-term survivability of the plan.
Retirement planning
For people nearing retirement, maximizing one’s Social Security benefit is most important. Some ways to do this are:
- Delay benefits: If one can afford to wait until they reach 70 to claim their Social Security benefits, then they should do so, as this raises the amount received each month by quite a bit.
- Maximize earnings: Having stable high earnings for a period of 35 years will greatly enhance one’s benefits. This might imply seeking promotion or furthering education.
- Stay informed: The periodic statements from Social Security should be eyed by all at all times and go through the benefit calculation process in order to allow for an informed decision at the right time.
That simply means earning as high as $4,873 in August 2024 Social Security benefits is a very important financial benefit opportunity. Knowing what must be paid, when, and how to maximize one’s benefit is the key to helping retirees in planning for their financial future.
