If you read a recent USA Today article, you would have seen a story with this intriguing headline: “3 steps to claiming the $4,555 max monthly Social Security benefit.” And if you are pushing retirement age, you would of course want to read that story and get yourself locked into a heaping serving from the Social Security gravy train.
In a nutshell, the story says this. To get a maximum Social Security benefit, you’ve got to do these three things: 1) work for 35 years; 2) earn the maximum Social Security taxable salary every year; and 3) wait until you are 70 to claim Social Security.
But that promise of maximum benefits was very misleading. I mean, think about it. Who is going to read an article headlined “3 steps to claiming the $4,555 max monthly Social Security benefit?” It is very likely going to be someone pushing Social Security age. In other words, someone in their late 50s or early 60s. Well, if you’re already that age, there is absolutely nothing you can do to change step 2. (Most people earn far less than the Social Security maximum taxable base—currently $160,200.) Obviously, you can’t go back 35 years and change your earnings history….