Getting the most you can out of Social Security is key to enjoying a successful retirement. Around half of households with someone age 65 or older receive 50% or more of their income from the government program, according to data reviewed by the Social Security Administration (SSA).
Receiving the maximum possible Social Security retirement benefit requires you to work a long, high-paying career and wait until age 70. Even if you earn a high income, you’ll find a huge difference in what you could claim at 62, 66, 67, or 70. The discrepancies in the monthly checks of high earners at each of those ages display the value of delaying benefits as long as possible.
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How to maximize Social Security benefits
The biggest factors impacting how much you’ll collect in Social Security are how much you earn during your career and when you claim your benefits. The more you earn during your career and the longer you wait to claim benefits, the bigger your monthly check.
When the Social Security Administration calculates your monthly benefit, it looks at your earnings history, and it selects the 35 highest-earning years, adjusted for wage inflation. It then calculates your average inflation-adjusted monthly earnings (AIME) during those 35 years. It plugs that number into a formula based on the year you were born, which determines your primary insurance amount (PIA).
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Your PIA is the amount you’ll receive if you apply for benefits when you reach your full retirement age, which ranges between 66 and 67 for most readers. If you claim earlier than full retirement, you’ll receive less than your PIA; claim later, and you’ll receive more.
If you’re a high earner, some of your income might be exempt from Social Security taxation. There’s a maximum level of earnings each year that the SSA will count toward your earnings calculation. The amount gets adjusted for wage inflation over time. If you earn above the maximum-taxable earnings for 35 years, you could qualify for the maximum possible Social Security benefit.
Here’s a table with the last 50 years of maximum-taxable earnings.
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| Year | Earnings | Year | Earnings |
|---|---|---|---|
| 1975 | $14,100 | 2000 | $76,200 |
| 1976 | $15,300 | 2001 | $80,400 |
| 1977 | $16,500 | 2002 | $84,900 |
| 1978 | $17,700 | 2003 | $87,000 |
| 1979 | $22,900 | 2004 | $87,900 |
| 1980 | $25,900 | 2005 | $90,000 |
| 1981 | $29,700 | 2006 | $94,200 |
| 1982 | $32,400 | 2007 | $97,500 |
| 1983 | $35,700 | 2008 | $102,000 |
| 1984 | $37,800 | 2009 | $106,800 |
| 1985 | $39,600 | 2010 | $106,800 |
| 1986 | $42,000 | 2011 | $106,800 |
| 1987 | $43,800 | 2012 | $110,100 |
| 1988 | $45,000 | 2013 | $113,700 |
| 1989 | $48,000 | 2014 | $117,000 |
| 1990 | $51,300 | 2015 | $118,500 |
| 1991 | $53,400 | 2016 | $118,500 |
| 1992 | $55,500 | 2017 | $127,200 |
| 1993 | $57,600 | 2018 | $128,400 |
| 1994 | $60,600 | 2019 | $132,900 |
| 1995 | $61,200 | 2020 | $137,700 |
| 1996 | $62,700 | 2021 | $142,800 |
| 1997 | $65,400 | 2022 | $147,000 |
| 1998 | $68,400 | 2023 | $160,200 |
| 1999 | $72,600 | 2024 | $168,600 |
Table source: Social Security Administration.
Earning above those thresholds throughout your career can set you up for a great retirement, but the age you claim can have a huge impact on your monthly benefit.
Here’s the maximum possible Social Security benefit at ages 62, 66, 67, and 70
Even if you’re in line for the maximum possible benefit, your claiming age can have just as big of an impact, if not more, on your monthly benefit.
Claiming as soon as possible at 62 will result in a significant cut in benefits relative to waiting until age 70. That said, you’ll receive eight more years of monthly benefits, which may allow you to retire earlier or enjoy the early years of retirement more. Many retirees split the difference, claiming benefits at their full retirement age, which will range from 66 to 67 for most readers.
Here’s what the maximum benefit looks like at each of these key ages in 2024.
| Retirement Age | 62 | 66 | 67 | 70 |
|---|---|---|---|---|
| Maximum monthly benefit | $2,710 | $3,652 | $3,911 | $4,873 |
Table source: Social Security Administration.
As you can see, there’s a stark difference in the monthly income depending on the age you claim. A 70-year-old can receive up to $58,476 this year, while a 62-year-old can only max out at $32,520. One is a solid middle-class income; the other will probably need to supplement Social Security with significant retirement savings.
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Put another way, someone claiming at age 70 in 2024 could receive the same monthly benefit as a 62-year-old who maxed out their earnings with less than 38% of the average monthly earnings throughout their career.
That’s in part due to changes in full retirement age, but also shows the power of delaying benefits.
Should you wait until age 70 to claim Social Security?
If you earned a large enough paycheck to max out your Social Security earnings, you’re likely well positioned for retirement, even without taking Social Security benefits.
It might be tempting to claim your benefits early so you can start enjoying your retirement even more, adding a little extra cushioning to your savings. But you may be better off drawing a bit more from your retirement savings early and delaying your benefits until later.
Few investments provide a better risk-free return than delaying Social Security benefits. If you turn 62 this year or later, you’ll benefit from a 7.4% real compound annual growth rate (CAGR) in your monthly benefit check by delaying the eight years from 62 to 70. Keep in mind, the S&P 500 has historically produced a 6.8% inflation-adjusted return, and those returns come with considerable risk. So, on average, you’ll be better off delaying benefits as long as possible.
The benefits of delaying are even greater for those with considerable wealth and no pressing need for the supplemental income. You could ultimately reduce your taxable income over the long run. Delaying also protects against living a very long life, which is more likely among the wealthy, since you’ll collect your heightened benefit until you pass away.
Numerous studies also suggest waiting until 70 will optimize most retirees’ finances. An analysis from United Income in 2019 found that 57% of retirees would maximize their wealth by waiting to claim benefits until age 70. By comparison, just 6.5% of retirees would benefit from claiming before age 65. So, even if you’re not (yet) in line to collect the maximum possible benefit from Social Security, you should delay your benefits as long as you can afford to do so.
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The $22,924 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
