Nearly 51 million Americans received Social Security retirement benefits last month. The average amount received was a little under $1,782, which is only $21,384 on an annualized basis.
But it's possible to make a lot more than that. Want the max $4,555 monthly Social Security benefit? Here's the salary you need.
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More than a salary
Before I reveal the magic number, there's something important to understand: It takes more than a specific salary amount to make the maximum Social Security benefit. There are three key steps to reach that goal.
First, you must work for at least 35 years. The Social Security Administration (SSA) benefits calculation includes 35 years of income. If you don't work for 35 years, that calculation will plug in $0 for each year below the 35-year threshold. The bottom line is that you're not going to receive the maximum monthly benefit regardless of your salary level if you don't put the required time in.
Second, you have to earn at least as much as the annual wage cap for each of those years. We'll get to that shortly.
Third, you'll need to delay claiming Social Security benefits until age 70. There's a reduction in benefits for anyone who retires before their full retirement age (FRA). But even waiting until your FRA won't be enough to max out your monthly benefit.
More than one answer
Now let's answer the initial question. The salary you need to receive the max $4,555 monthly Social Security benefit is a moving target. That's because the amount changes nearly every year. For 2023, you'll need to make at least $160,200. But the amount has been lower in the past.
The following shows what SSA refers to as the "benefit base" for each year since 1980. This benefit base represents the maximum amount subject to Social Security taxes.
| Year | Benefit Base | Year | Benefit Base |
|---|---|---|---|
| 1980 | $25,900 | 2002 | $84,900 |
| 1981 | $29,700 | 2003 | $87,000 |
| 1982 | $32,400 | 2004 | $87,900 |
| 1983 | $35,700 | 2005 | $90,000 |
| 1984 | $37,800 | 2006 | $94,200 |
| 1985 | $39,600 | 2007 | $97,500 |
| 1986 | $42,000 | 2008 | $102,000 |
| 1987 | $43,800 | 2009 | $106,800 |
| 1988 | $45,000 | 2010 | $106,800 |
| 1989 | $48,000 | 2011 | $106,800 |
| 1990 | $51,300 | 2012 | $110,100 |
| 1991 | $53,400 | 2013 | $113,700 |
| 1992 | $55,500 | 2014 | $117,000 |
| 1993 | $57,600 | 2015 | $118,500 |
| 1994 | $60,600 | 2016 | $118,500 |
| 1995 | $61,200 | 2017 | $127,200 |
| 1996 | $62,700 | 2018 | $128,400 |
| 1997 | $65,400 | 2019 | $132,900 |
| 1998 | $68,400 | 2020 | $137,700 |
| 1999 | $72,600 | 2021 | $142,800 |
| 2000 | $76,200 | 2022 | $147,000 |
| 2001 | $80,400 | 2023 | $160,200 |
Data source: Social Security Administration.
To receive the maximum Social Security benefit, your salary must be at or above the benefit base in each of the 35 years when you earned the most money.
The fortunate few
Nearly one out of five workers will have earnings above the taxable maximum in at least one year of employment, according to SSA. However, in a given year, only around 6% of workers will make more than the benefit base. The reality is that only a fortunate few will be able to receive the max $4,555 monthly Social Security benefit.
But there are some things you can do to boost your Social Security benefits. One obvious move is to make as much money during your working years as you possibly can. Go after promotions. Change jobs when your employer is paying a competitive amount. Be sure to work for at least 35 years. Even if you retire early, delay filing for Social Security benefits until you're 70. Maybe you won't receive the max benefit, but you can make more than you otherwise would have.
