Getting a bigger Social Security check can be the difference between getting by and really enjoying your retirement. For those still working, the best path toward receiving a bigger benefit is to earn a higher salary.
Just how big can your benefit grow? The maximum retirement benefit in 2023 is $4,555. In 2024, that number will climb to $4,873. In order to qualify for that maximum benefit, though, you'll need to earn a great salary throughout your career.
Here's a look at how to qualify for that maximum $4,555 Social Security benefit.
Image source: Getty Images.
The minimum salary for the maximum Social Security benefit
It's important to understand the way Social Security calculates your retirement benefit.
The Social Security Administration looks at your earnings history, and it takes the 35 highest earning years, adjusted for inflation.
It then averages those 35 years and plugs them into a formula to determine your primary insurance amount. That's the amount you'll receive at your full retirement age. It'll adjust your actual benefit depending on when you make your claim. Claim early and you'll receive less; delay longer and you'll receive more.
But there's an important detail in the Social Security program. Your salary, as it relates to the Social Security benefits formula, maxes out at a certain amount each year.
That amount is officially referred to as the "contribution and benefit base," but it's basically the minimum salary for the maximum Social Security benefit. Above that amount, you won't pay any Social Security taxes on your wages, and that's why your wages won't count toward your Social Security earnings. The government adjusts the number every year for inflation.
So, if you want the maximum Social Security benefit, you have to earn the minimum salary for the maximum Social Security benefit for 35 years in your working career. Here are the last 50 years of the earnings cap:
| 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 | 2024 | $168,600 |
Data source: Social Security Administration.
As you can see, the salary needed to max out Social Security retirement benefits in 2023 is $160,200. That number will climb to $168,600 next year.
Earning that level of salary consistently for 35 years isn't very common. Only a select few of Social Security's beneficiaries will actually receive the maximum payment in any given year.
Still, you can boost the Social Security benefit you've earned with one simple strategy.
If you want the maximum Social Security benefit, you must delay claiming until age 70
Even if you earned above the minimum salary to maximize Social Security for 35 years, there's one extra step you have to take to get the max $4,555 benefit. You have to wait to make your claim until age 70.
70 is the latest age you can delay taking benefits. For every year you delay beyond your full retirement age, you'll earn delayed retirement credits equal to 8% of your primary insurance benefit.
People turning 70 in 2023 were born in 1953 and have a full retirement age of 66. Delaying until age 70 earned them an extra 32% on their Social Security checks.
But full retirement age isn't the same for everyone. Those born between 1955 and 1959 will reach their full retirement age between 66 and 67 years old. Those born in 1960 or later will reach full retirement age at 67.
The table below illustrates the impact of claiming age on the size of your benefits check relative to your primary insurance amount.
| Claiming Age | Full Retirement Age of 66 | Full Retirement Age of 67 |
|---|---|---|
| 62 | 75% | 70% |
| 63 | 80% | 75% |
| 64 | 86.7% | 80% |
| 65 | 93.3% | 86.7% |
| 66 | 100% | 93.3% |
| 67 | 108% | 100% |
| 68 | 116% | 108% |
| 69 | 124% | 116% |
| 70 | 132% | 124% |
Data source: Social Security Administration
Delaying until 70 is usually the best way for any individual to maximize their lifetime Social Security benefits. There are, however, various circumstances in which it makes sense to claim early. Factors to consider include your personal health, your spouse's benefit, your spouse's health, and your other retirement savings.
If you want the maximum Social Security benefit, though, you need to earn a high wage during your career and delay until age 70 to claim.
