Why is my Social Security benefit higher than the Maximum Rate?

Larry here, Born in 1948, I am the oldest of three children. Likewise, I drew my Social Security retirement benefit at the age of 70, having worked for over 35 years at the maximum social security wage.

This year and every year since I began receiving my benefit, I’ve received more than what I’ve read is the maximum monthly benefit someone can receive. What gives? Thanks, Steve

Hello, my name is Steve. It is important to note that the indexing factors used to determine a person’s benefit rate for Social Security retirement benefits are different for each calendar year of birth.

Most likely, when you read about a maximum benefit rate, the claimant is referring to those who were born in a specific year of the calendar.

For each calendar year in which a person is born, the maximum benefit rate increases by one percentage point. A person’s benefit rate can grow indefinitely as long as they work and pay into Social Security.

In fact, there is no “maximum benefit rate,” but rather a maximum amount that each person can receive in a given year based on their year of birth and the date they began receiving benefits. Best, Larry.

Also Read: Schedule of Social Security Benefits in 2022: Important Dates to Be Aware Of

How Do I Get Social Security To Give Me The Rest Of My Delayed Retirement Credits?

Why is my Social Security benefit higher than the Maximum Rate

Larry, hello there: In 2011, at the age of 62, I began receiving $1,379 in monthly retirement benefits. In 2016, when I was 66, I put a 22-month hold on my benefits. Late last year, I re-started receiving my unemployment compensation.

A letter I received in June 2017 stated that my 8 percent increase ($1,500 * 1.08) would rise to $1,625, which I accepted.

It was for the 12 months that I was on leave in 2016 that the increase of 8% occurred. For the 10 months in 2017 that I took a leave of absence, I didn’t receive a notice in 2018, which would be about 7%. Numerous phone calls have gone unanswered. Is there a way to solve this problem? Thanks, Brian

What’s up? For each month you voluntarily suspended your benefits, you should receive a 2/3rds of a percent benefit increase. Because such adjustments are usually made automatically, any adjustment to which you were entitled should have been automatically added to your benefit rate.

It’s about the only thing you can do if Social Security hasn’t given you credit for all of your Delayed retirement credits (DRC) is tell them about the problem and see if they can fix it. If they don’t give you credit for the rest of your DRCs, you can’t file an appeal against them.

Why is my Social Security benefit higher than the Maximum Rate

It’s possible to submit a formal request for a manual recalculation of your benefit rate by filling out SSA Form 795, which asks for specific information about the issue at hand. Otherwise, you could try contacting the offices of either your US representative or one of your US senators.

Problems with Social Security are frequently resolved as a result of a congressional or senate inquiry. Best, Larry

Also Read: How to Make Sure You Get Your $841 Social Security Check in February 2022

Do I have your assurance that my wife will be able to claim half of the money I earn from my job?

Why is my Social Security benefit higher than the Maximum Rate

Larry, hello there: At the age of 64, my wife began receiving reduced-rate Social Security retirement benefits. In 1953, she was born. At 66 and 2 months old, my full retirement date, I intend to retire in March. According to what I’ve been told, my wife will be eligible to receive half of what I get as a pension on my record.

That would be a huge leap forward in terms of growth. Whether or not this is true, please explain why. Thanks, Sean

Pleased to meet you, Sean. In a sense, yes. If your wife was born prior to 1/2/1954, she could have applied for spousal benefits only if she hadn’t already applied for her own retirement benefits. As a result, she would have received half of your primary insurance Amount (PIA).

If a person waits until he or she reaches full retirement age before taking Social Security benefits, their PIA is the same as their benefit rate (FRA).

Your wife can only receive spousal benefits if your PIA exceeds her PIA by more than twice since she has already begun collecting her retirement benefits. If this is the case, your wife would be eligible for an additional spousal benefit when you begin drawing your benefits. She will, however, keep the reduction she made on her own behalf in order to begin drawing benefits earlier.

Maximize My Social Security or MaxiFi Planner may be useful for you and your wife to ensure that your family receives the maximum lifetime benefits. Other companies or non-profits’ Social Security calculators may provide accurate advice if they were built with extreme care. Best, Larry

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