The payroll earnings cap is $127,200 in 2017; in 1982, 35 years ago, it was $32,400. Only about 6% of workers earn above the maximum in any given year. For someone who racked up maximum taxable earnings each year, and who reaches the FRA of 66 in 2017, the maximum benefit would be $2,687 a month, or $32,244 a year.
Also to know is, what is the maximum Social Security benefit for 2018?
In 2017, the maximum monthly Social Security benefit for a worker retiring at full retirement age was $2,687. In 2018, the maximum benefit will increase $101 per month to $2,788.
How do you find out how much Social Security you will receive?
Remember, if you receive benefits or have Medicare, you can use your my Social Security online account to:
- Get your benefit verification letter;
- Check your benefit and payment information and your earnings record;
- Change your address and phone number;
- Start or change direct deposit of your benefit payment;
How do you calculate Social Security?
Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount.” You can begin to receive Social Security benefits as early as age 62, but at a reduced rate.