How much do you have to pay in each year to draw the maximum SS when you retire?

This is for a self-employed person, who will not retire until he reaches the maximum retirement age of at least 65.

Public Comments

1. The amounts change from year to year. For 2007 it's paying on income just under $100,000 for the year.
2. S.S. payments are based on your earnings history,usually the 5 highest income years or the last 3 years of working. Info can be found at the Social Security website and you can get a benefits statement sent to you. It will list your retirement payments at various ages as well as disability payments if you should become disabled before retirement and death benefits should you die. There is no minimum,but there is a maximum of S.S. taxes collected on wages. The tax rate is about 15% of wages (that is split between an employer and employee),self employed have to pay the full amount themselves.
3. To receive any amount of Social Security benefits, you must have the minimum amount of work credits. Everyone born in 1929 or later needs 40 credits to be eligible for retirement benefits. Therefore since you can earn four credits per year, you will need at least 10 years of work to become eligible for retirement benefits. Each year the amount of earnings needed for a credit rises as average earnings levels rise. In 2008, you receive one credit for each $1,050 of earnings, up to the maximum of four credits per year. For 2007, you receive one credit for each $1,000 of earnings. The maximum benefit depends on the age at which a worker chooses to retire. The amount for 2008 for a person retiring at full retirement age (65 years and 10 months) is $2,185. This is based on earnings at the maximum taxable amount for every year after age 21. This table shows the maximum taxable amounts over the years: http://www.socialsecurity.gov/OACT/COLA/cbb.html
4. The SSA uses your 35 highest years. They adjust for inflation. Keep in mind that SE income is sort out of his control. He's got to be successful at it!