Anyone who contributed to the system is entitled to Social Security, and that includes billionaires like Michael Bloomberg. While the program was intended to keep people out of poverty after they couldn’t work, Social Security is a nice bonus for some people who continue to work.
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Bloomberg is eligible for the maximum Social Security payout since they have put so much money into the program. Here’s how much Michael Bloomberg receives from Social Security each year.
Claiming Social Security
You can claim Social Security when you turn 62 years old, but there isn’t much of an incentive to take it out early. People who take out Social Security at 62 get the lowest possible benefit, and it’s unlikely that Bloomberg took it out when he was first eligible in 2004.
Bloomberg and everyone else had to wait until turning 70 to receive the maximum Social Security benefit. Since Bloomberg was born in 1942, he reached full retirement age in 2008, when he turned 66. However, the full retirement age is 67 for anyone who was born in 1960 or later.
Bloomberg is currently 83 years old, and he qualifies for the maximum Social Security benefit, assuming he started to receive checks at 70.
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How The SSA Determines Your Monthly Benefit
The more money you put into the system, the more you will get out of it. However, there are some caps that limit how much you can earn. For instance, Bloomberg isn’t getting a higher Social Security paycheck than someone who earned $1 million per year.
The program considers lifetime earnings, inflation and your average monthly earnings from your 35 most productive years.
How Much Michael Bloomberg Earns From Social Security
Bloomberg was a top earner, which put him in a position to qualify for the highest possible Social Security benefits. According to the SSA, the maximum Social Security benefit was $5,108 this year. It’s a small drop in the bucket for the billionaire, but it is an extra income source that he has earned from his contributions to the program.
Relying on Social Security to fund your retirement is not a great strategy, as most experts have stated, even if you qualify for the highest possible benefit. Ultimately, how and where you get your retirement income ultimately comes down to your financial strategy now and leading up to your golden years.
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This article originally appeared on GOBankingRates.com: How Much Is Michael Bloomberg’s Social Security Check?
