How Will Your Social Security Stack Up to the $4,194 Max?
The wealthiest Social Security beneficiaries can expect $4,194 a month -- or over $50,000 this year -- from the program, but obtaining a benefit this size is no easy feat. Patience and a high income are key, and so is understanding how the government calculates your benefit in the first place. If you want to squeeze the most money possible out of Social Security, here's what you need to know.
The first step in calculating your Social Security benefit is to figure out your average indexed monthly earnings (AIME). The government does this by totaling up your earnings over your 35 highest-earning years, adjusted for inflation, and dividing by 420 -- the number of months in 35 years. For example, if you earned $50,000, adjusted for inflation, every year for 35 years, your AIME would be $4,167.
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Source Fool.com
