In 2023, the highest monthly Social Security check possible is $4,555. If you hope to receive such a generous sum in your bank account to help fund your retirement, you're probably wondering if you'll be eligible.
The answer is probably no -- but here's how you can find out.
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How much did you earn in your 35 highest-paid years?
Social Security benefits are directly based on a percentage of average wages in the 35 years your earnings were the highest (after your income over your career is adjusted for inflation). The catch is, not every dollar necessarily counts. Only income up to a wage base limit is subject to Social Security tax and counted in your benefits formula.
In order to get the maximum $4,555 benefit, you must have the highest average wage possible. This means that for the 35 years of earnings your benefits are based on, you must have earned at least the wage base limit.
In 2023, the wage base limit is $160,200. So if this year is one of the 35 years included when your benefit is calculated, you'd be on track to max out your benefit only if you're earning at least this much.
The wage base limit is adjusted over time for inflation. For example, it was $147,000 in 2022, $118,500 in 2015, and so on. Next year, in 2024, it will likely be higher than $160,200, assuming wages and costs go up year over year. You must earn the inflation-adjusted equivalent of $160,200 for a minimum of 35 years, so you will need a long history as one of the country's top earners in order to be on track for the max $4,555 benefit.
What age did you file for Social Security checks?
When Social Security calculates how much retirement income you will receive, it takes the average wages earned over 35 years and gives you a percentage of that amount. This basic formula is used to determine your primary insurance amount (PIA), which some people refer to as their standard benefit.
Your standard benefit is reduced if you claim it before your full retirement age (FRA), and it's increased if you claim after it. For each year you wait beyond your FRA -- up to 70 -- benefits go up.
As a result, the maximum benefit of $4,555 is only available if you had the highest taxable wage for 35 years and waited until 70 to get your first payment. Take benefits even a month prior to turning 70, and you can't max them out.
So you need to go without retirement benefits for a long time and earn a very high income for at least 35 years to get that $4,555. You probably won't do that (or haven't so far), but you can figure out how much your personal monthly benefit will be by visiting mySocialSecurity, signing into your account, and seeing an estimate of your benefits at different claiming ages.
If you're surprised by how much lower your benefit is than the maximum, you can start working on increasing your income and plan for a delayed claim. But since the program isn't meant to be your sole support in retirement, you can also start saving more to supplement Social Security.
