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Social Security: Update on the Maximum Benefit for 2023

The maximum benefit amount of Social Security would depend on when you choose to retire.
The maximum benefit amount of Social Security would depend on when you choose to retire. (Photo: Tododisca)

If you’re getting close to retirement age, you might wonder about Social Security’s maximum benefit amount for 2023.

The maximum benefit is not a one-size-fits-all answer, as it is based on when you choose to retire.

According to Marca, if you retire at your full retirement age, which is 66 years and 2 months in 2023 (born between 1955 and 1959), you could get up to $3,627 a month. Note that the maximum benefit amount is based on your highest 35 years of earnings history.

If you decide to retire at 70 this year, you could receive the maximum benefit amount of $4,555 per month!

If you decide to retire at 70 this year, you could receive the maximum benefit amount of $4,555 per month! (Photo: InvestmentNews)

Also Read: Social Security: Fewer Americans Qualify to Receive the Maximum Benefits – Here’s Why 

However, if you decide to retire earlier in 2023, your payout will be reduced as you’re collecting the benefits for longer. For instance, if you’re 62 this year and choose to retire, your maximum benefit amount would be $2,572 per month.

On the other hand, if you delayed your retirement and you’re 70 years old this year, your maximum benefit would be $4,555 per month!

Updates on the Social Security Benefits in 2023

The maximum benefit amount of Social Security changes every year as it is based on the cost-of-living adjustment (COLA).

COLA is an adjustment made to Social Security benefits to account for inflation. The 2023 COLA is yet to be announced, but the COLA for 2022 was 5.9% –  the highest in 40 years!

You can also use the SSA benefits calculator to determine the maximum benefit amount you could receive once you retire.

Find Out: Age of Full Retirement to Be Raised to 70 Under New Social Security Plan

More: Senator Bernie Sanders Reintroduce the Social Security Expansion Act

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