How much you receive in Social Security benefits depends heavily on you. The decisions you make before you retire have significant repercussions later.

It's possible to collect up to $4,555 per month in Social Security benefits. But there are three steps you must take to claim this maximum amount.

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1. Work for at least 35 years

Let's start with what's probably the easiest prerequisite to collecting the maximum monthly Social Security benefit. You must first work for at least 35 years.

This step shouldn't be difficult for most Americans. If you begin your career by age 25 and then work at least until you're 60, you're all set. 

What if you work for more than 35 years? It won't change the maximum benefit, but it could help you reach it. Social Security benefits are calculated using average indexed monthly earnings (AIME) for the 35 working years with the highest indexed earnings. 

2. Earn the maximum taxable amount each year

The next step is much more difficult. You'll need to earn the maximum taxable amount (also called the contribution and benefit base) in each of the 35 years used to calculate Social Security benefits.

This maximum taxable amount stands at $160,200 for 2023. However, it changes nearly every year. The following table shows what the threshold has been over the last five decades:

Year Earnings Year Earnings
1973 $10,800 1999 $72,600
1974 $13,200 2000 $76,200
1975 $14,100 2001 $80,400
1976 $15,300 2002 $84,900
1977 $16,500 2003 $87,000
1978 $17,700 2004 $87,900
1979 $22,900 2005 $90,000
1980 $25,900 2006 $94,200
1981 $29,700 2007 $97,500
1982 $32,400 2008 $102,000
1983 $35,700 2009 $106,800
1984 $37,800 2010 $106,800
1985 $39,600 2011 $106,800
1986 $42,000 2012 $110,100
1987 $43,800 2013 $113,700
1988 $45,000 2014 $117,000
1989 $48,000 2015 $118,500
1990 $51,300 2016 $118,500
1991 $53,400 2017 $127,200
1992 $55,500 2018 $128,400
1993 $57,600 2019 $132,900
1994 $60,600 2020 $137,700
1995 $61,200 2021 $142,800
1996 $62,700 2022 $147,000
1997 $65,400 2023 $160,200
1998 $68,400    

Data source: Social Security Administration. 

There's one other wrinkle to keep in mind. You must reach the maximum taxable amount in a job for which Social Security taxes are applicable. That's the case for most jobs, but not all. For example, some employees of state, county, and municipal governments are covered by state-funded pension plans instead of Social Security. Railroad employees are also covered by a separate pension.

3. Wait until age 70 to collect Social Security benefits

The third step to maximizing your Social Security benefit is to wait until you reach age 70 to begin collecting retirement benefits. This is a good idea for most people even if they don't check off the second step for claiming the $4,555 max monthly Social Security benefit. It can boost the amount you receive by 24% compared to claiming at a full retirement age of 67.

However, most individuals don't hold off until 70 to receive benefits. Last year, only 8.6% of men and 9.5% of women did so, according to the Social Security Administration. 

One more thing

The maximum monthly Social Security benefit will almost certainly increase in 2024 and probably in the subsequent years. The annual cost-of-living adjustment (COLA) for Social Security should push the maximum amount higher unless there's no inflation (which seems unlikely). 

However, there's also a possibility that the maximum amount could be reduced in the future. The combined Social Security trust funds are on track to run out of money in the next decade unless changes are made. If this happens, Social Security will continue to pay benefits, but at a reduced level. In this case, how much you receive in Social Security benefits depends not on you but on your congressional representatives.