The maximum earnings cap in 2024 is $168,600. Is Social Security Based on the Last 5 Years of Work? No, Social Security benefits are based on the 35 highest-paid inflation-adjusted years. They take into consideration the age when individuals start receiving benefits. The Bottom Line Soc...
SSDI benefit payments are based on each individual’s average lifetime earnings that are covered by Social Security. Other benefits, such as workers' compensation, could lower how much you receive from SSDI.3To find out what you could get, check out the SSA’s online benefitscalculator. How ...
It's not like someone who is making $500,000 gets FICA-taxed on all of his earnings and then gets capped on Social Security benefits. He's just getting the maximum Social Security payout amount when it comes time. The $500,000 income earner is already paying the highest marginal federal...
Retireesmay work while collecting Social Security benefits, but those younger than their FRA will be subject to the retirement earnings test (RET). Under this test, if your earnings exceed a certain limit (which changes annually), you will temporarily forfeit some or all of your benefits. Once...