If you’re planning for retirement, one of your key questions is how much you can earn from Social Security – what’s the maximum you can get? As of January 2024, the maximum benefit you can receive at full retirement age is $3,822 per month. But that’s only part of the story, because the real maximum benefit is actually a fair bit higher – and here’s how to get it.
The maximum Social Security check
Your maximum Social Security benefit depends significantly on the age you file for your benefit, among other factors such as your contributions to the program:
- Your maximum benefit if you file at age 62 – the youngest possible age – is $2,710 per month.
- Your maximum benefit if you file at full retirement age – between 66 and 67 – is $3,822 per month.
- Your maximum benefit if you file at age 70 – the age when extra benefits stop accruing – is $4,873 per month.
Social Security reduces benefits as much as 30 percent for those filing at age 62. On the other hand, it increases benefits by 8 percent for each year after full retirement age that you delay filing.
In contrast to these maximum amounts, the average Social Security benefit is quite a bit lower – about $1,706 per month, as of August 2023. That’s less than half of the maximum benefit for a worker starting benefits at full retirement age in 2024.
While waiting longer to file may maximize your total monthly benefit, it may not maximize your total lifetime payout from Social Security depending on your longevity. You’ll want to calculate your likely breakeven age to see when it might be best to file for Social Security benefits.
With this Bankrate Social Security calculator, you can estimate your future monthly benefit.
How are Social Security benefits calculated?
Social Security calculates benefits using a complex formula to determine your primary insurance amount (PIA) – that is, your benefit at full retirement age.
To do so, Social Security takes your 35 highest-earning years after age 21 to figure your average indexed monthly earnings. You’ll get credit only for earnings up to the Social Security wage base, which is the maximum amount of income on which Social Security assesses taxes. For 2024, the Social Security wage base is $168,600, an increase from $160,200 in 2023.
Employees pay 6.2 percent of their income up to the wage base, while their employers put up another 6.2 percent. The self-employed foot both halves of this Social Security tax.
And if you don’t have 35 years of earnings? Social Security will figure a zero in for each missing year, reducing your average monthly earnings.
The numbers from these high-earning years are summed and then indexed for inflation to determine your average indexed monthly earnings. Then Social Security applies a graduated formula based on these earnings to determine your actual payment at full retirement.
You can see the full details in this article and then run through a real-life example.
How to maximize your Social Security benefit
Based on the formula above and other Social Security rules, you have a few key ways to maximize your benefit amount:
- Earn more. You can earn more in a given year, up to the Social Security wage base, and get more credit, raising your average monthly earnings.
- Add more high-earning years to your average. Your 35 highest-earning years are counted in figuring your benefit, so working later in life, when you likely earn more, may push out lower-earnings years when you were younger or even just fill in gap years that would otherwise have no or insufficient earnings.
- Delay filing for your benefit. Your benefit will be reduced substantially if you file before full retirement age and will increase significantly if you wait as late as age 70 to file.
While you usually don’t get a second chance when it comes to Social Security, in at least two situations you can get a “do over,” allowing you to get a higher payout later.
- Suspend your benefit. If you took benefits before full retirement age and are not yet 70, you can suspend your benefit and earn credits for each month they’re suspended.
- Withdraw your benefit. If you took benefits less than a year ago and have never filed to withdraw your benefit before, then you can withdraw your benefit and it will be like you never filed at all. However, you’ll have to repay any money you’ve received.
If you’re trying to maximize your Social Security benefit, it makes sense to explore all the ways to do so. You have many levers to pull that can help you get a higher payout.
Bottom line
The maximum Social Security benefit relies on earning a high level of income over a long period, something that very few people achieve. But even if you aren’t a high earner, you can make smart moves, such as delaying filing for benefits, to increase your payout significantly.
FAQs
The maximum Social Security check
How much do you need to make to get maximum Social Security? ›
For example, in 2024, if you want to receive the maximum Social Security amount when you retire, you'll need to make at least $168,800 annually, an $8,400 increase from last year.
How much Social Security will I get if I make $120000 a year? ›
The point is that if you earned $120,000 per year for the past 35 years, thanks to the annual maximum taxable wage limits, the maximum Social Security benefit you could get at full retirement age is $2,687.
How do you get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Is it better to collect Social Security at 62 or 67? ›
In terms of lifetime benefit optimization, age 67 was the second highest at around 10%. Between ages 62 and 67, the latter gave retired workers a higher statistical probability of maximizing their lifetime income from Social Security.
How much Social Security will I get if I make $100,000 a year? ›
If your pay at retirement will be $100,000, your benefits will start at $2,026 each month, which equals $24,315 per year. And if your pay at retirement will be $125,000, your monthly benefits at the outset will be $2,407 for $28,889 yearly.
Is Social Security based on the last 5 years of work? ›
Social Security bases your retirement benefits on your lifetime earnings. We adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Then we calculate your average indexed monthly earnings from your highest 35 years of earnings.
At what age is Social Security no longer taxed? ›
Social Security tax FAQs
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
How much do millionaires make on Social Security? ›
This is how much millionaire workers get from Social Security. An income of $1 million a year amounts to a monthly payment of about $83,333.33. Retirement benefits are generally designed to replace about 40% of pre-retirement income.
What is the Social Security 5 year rule? ›
• If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
Can I withdraw my Social Security in a lump sum? ›
When you wait until full retirement age or later to claim Social Security retirement benefits, you have an option. You can receive a lump sum payment of up to six months of retirement benefits.
Can I draw Social Security at 62 and still work full time? ›
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
What is the #1 reason to take Social Security at 62? ›
You need cash now. With the rising cost of living, you may decide to claim your Social Security benefits early. From 2008 to 2009, nearly 36% of eligible men and 39% of eligible women started claiming benefits at age 62 for one simple reason — to pay the bills.
What is the smartest age to collect Social Security? ›
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
At what age do you get 100% of your Social Security? ›
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. The chart on the next page lists the full retirement age by year of birth.
Is Social Security based on your highest 3 years of earnings? ›
We base your retirement benefit on your highest 35 years of earnings and the age you start receiving benefits.
What is the maximum income to pay Social Security? ›
The Social Security tax limit refers to the maximum amount of earnings that are subject to Social Security tax. For 2024, the Social Security tax limit is $168,600. Workers earning less than this limit pay a 6.2% tax on their earnings.
How much Social Security will I get if I make $75,000 a year? ›
If you earn $75,000 per year, you can expect to receive $2,358 per month -- or about $28,300 annually -- from Social Security.
