Why the 2018 Maximum Social Security Benefit Jumped More Than $100
Social Security helps tens of millions of Americans get the money they need in retirement, but there's only so much that the program can do. Social Security has a maximum amount that it can pay to retirees based on their work histories. However, that figure tends to go up from year to year, and Social Security recipients recently got the good news that the maximum Social Security benefit in 2018 will go up to $2,788 per month for a worker retiring at full retirement age. That's higher by $101 compared to what it was last year. However, depending on when you claim your benefits, your actual maximum will range from as low as $2,159 to as much as $3,698 monthly. Let's look more closely at the steps you need to take to get the maximum Social Security benefit and what you can do to get closer to that amount for your own retirement.
Each year, you can see how the Social Security Administration goes through the calculations for figuring out the maximum that Social Security will pay to retirees who take their benefits at different ages. To figure out the payment, the SSA makes assumptions. A worker must earn the maximum possible wage base since they turned 22 years old. As a result, every worker in the examples will have a 35-year work history, which gives workers maximum credit for their work history, even if they retire as early as age 62.
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Source: Fool.com
