Higher earners can receive a higher maximum Social Security benefit

The prospects in 2021 are looking good for wealthy retirees. In other words, well-off retirees will enjoy a windfall from Social Security in the coming year. According to the SSA, the maximum monthly benefit for someone retired at their full retirement age will increase by $137 to $3,148 in 2021. This means that higher earners will receive an extra $1,644 a year for the rest of their retirement life.

On the other hand, the maximum taxable earnings rose from $137,700 in 2020 to $142,800 in 2021. For any earnings above this amount, you won’t have to pay any Social Security payroll taxes. Check out these 26 States That Do Not Tax Your Social Security Benefits.