Attaining the maximum Social Security benefit is no easy task, which is why only a small percentage of retirees actually receive it. On one hand, the steps to earning monthly checks of $4,194 are concrete and mathematically driven. On the other, you'll also need to be fortunate enough to work consistently for several decades and earn quite a bit along the way.
Here, we'll go over what you'll need to do to be eligible for the highest monthly Social Security check.
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Earn the Social Security minimum wage base for 35 years
Social Security is calculated much the same as an insurance product. That is, the amount you pay into the system along the course of your working career will directly impact the amount you receive later upon claiming benefits.
This threshold has steadily risen over the past 80 years, increasing from a mere $3,000 in 1935 to $147,000 in 2022. You'd need to earn at least this amount and pay Social Security tax on it during your 35 highest-earning years.
The 35 years of earning doesn't have to be consecutive. This means you could work for 40 years, fail to meet the Social Security threshold in any five of them, and still log maximum Social Security earnings in the other 35.
In short, the more you put in, the more you'll receive later.
Wait to claim benefits until age 70
By deferring your Social Security claim until age 70, you're allowing your potential monthly benefit to build. Retirees who claim benefits at age 62 will receive only partial benefits, while those who wait until age 67 -- full retirement age (FRA) -- will receive exactly what they're entitled to receive, but not more.
Once you claim Social Security, you'll receive a monthly check until your death (unless you decide to reverse your decision within a year of your first claim.) A sooner claim will reduce the monthly benefit amount since it is projected to be paid out over a longer period of time, while a later claim will increase the monthly benefit amount.
If you're in good health and can afford to wait, you'll increase your monthly check by 8% for every year you delay your claim. Remember: To actually receive the maximum Social Security benefit, you'll need to have earned the maximum Social Security wage base for 35 years and delay filing your claim for benefits until age 70.
Putting Social Security in perspective
According to the Social Security Administration (SSA), only 6% of workers earn the maximum taxable Social Security threshold in any given year. To earn more than the wage base and do it for 35 years represents an even smaller minority. If you managed to do this and are able to wait to age 70 to file for benefits, consider yourself very fortunate.
The reality is that the decision to take Social Security is often complex, as it encompasses both financial and nonfinancial considerations. Try not to feel too much pressure to qualify for the maximum benefit, since it's an extremely elusive goal and may be impacted by broader issues like health or family dynamics. Consider instead to pursue a fulfilling career that pays well enough and decide on Social Security later in life.
Will you get the maximum monthly check?
Even though a minority of people actually do receive a $4,194 monthly check, it is definitely possible to be one of those people. You'll need to make sure you earn at least the maximum taxable Social Security wage base for 35 years and on top of that, you'll need to delay claiming benefits until age 70.
Think about focusing on a well-paying career that you find stimulating, while also having an eye on what that means for the future. If you're fortunate enough to have good health well into your 60s, you might be in the conversation to notch the highest monthly benefit when your 70th birthday rolls around.
