What is the family maximum percentage for Social Security benefits?

The correct family maximum percentage for Social Security benefits is 175%. This percentage is crucial because it sets a cap on the total amount of benefits that can be paid to a family based on the earnings record of one individual who is receiving Social Security benefits. The purpose of the family maximum is to prevent an excessive payout of benefits that could exceed a reasonable amount based on the insured individual’s earnings.

Specifically, the family maximum rule is applied when multiple family members, such as spouses and children, are eligible for benefits derived from a single worker's earnings record. In such cases, the total amount payable to the family cannot exceed 175% of the worker's primary insurance amount (PIA). This ensures that the distribution of benefits among family members is equitable and aligns with intended policy goals.

Other options, while they might seem plausible, do not accurately reflect the established maximum percentage applicable in these scenarios, which is distinctly 175%. Understanding this limit is key for financial planning and advising clients on their potential benefits in retirement or in the event of disability or death.