The age at which you file for Social Security benefits will have a major bear on on the amount yous receive each month. While you tin receive larger monthly payments by delaying benefits, many workers choose to file as early as possible at historic period 62. That can be a smart strategy in many cases, and in that location are several advantages to claiming early.

Yous tin still earn a substantial corporeality in benefits by claiming early, as well. In 2022, the maximum you can collect by filing at age 62 is $2,364 per month -- which is significantly higher than the $one,557 per month average do good amount. Here's what information technology takes to achieve the maximum monthly payments.

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How the length of your career affects your benefits

One of the nearly important factors when it comes to your benefit corporeality is the number of years you've worked. Most people go eligible for Social Security retirement benefits once they've earned income for 10 years, simply you'll need to piece of work for at least 35 years to receive the maximum benefit amount.

When calculating the amount yous'll receive, the Social Security Administration takes an average of your wages throughout the 35 highest-earning years of your career. That number is then adjusted for inflation, and the result is the amount you'll collect if y'all claim at your total retirement historic period (FRA).

If you piece of work more than 35 years, only the years with the highest earnings will be counted -- which could increase your boilerplate and outcome in a higher do good amount. If you work fewer than 35 years, still, you'll have zeros added to the equation, which will bring down your average.

How much you lot'll have to earn to reach the maximum benefit corporeality

Your income is another crucial factor in reaching the highest do good amount. The more you're earning, the more than you'll be eligible to collect in benefits -- up to a certain point.

Once you surpass the maximum taxable earnings limit (which is the highest income that'south subject to Social Security taxes), a college income won't result in additional benefits. To earn this maximum benefit amount, and then, yous'll need to achieve the maximum taxable earnings limit.

This limit changes from yr to year to account for aggrandizement. This year, the limit is $142,800 per year, but in 2022, information technology will increase to $147,000 per year. If your goal is to collect the maximum $ii,364 per month at age 62, you'll demand to be reaching these limits consistently throughout your career.

What if your earnings are falling short?

If yous're earning enough to accomplish the maximum benefit amount, that's fantastic. But the average worker will struggle to reach the income limits, and not anybody can afford to work 35 years before challenge.

The expert news is that if y'all're willing and able to delay benefits by age 62, you tin can earn closer to the maximum benefit corporeality.

Say, for instance, yous have an FRA of 67 years old, and by claiming at that age, you could receive $1,600 per month. If you were to merits early on at 62, your benefits would exist reduced by 30%, leaving you with $1,120 per month. But if yous delay benefits until age 70, you'd receive your full do good amount plus an extra 24%, or $1,984 per month.

Not everyone volition be able to wait until age 70 to file for benefits. Just if you're unable to reach the maximum benefit amount, delaying Social Security is one of the all-time and easiest ways to heave your benefits.