Social Security is a lifeline for many older adults, sometimes making the difference between enjoying a comfortable retirement and struggling to make ends meet. In fact, roughly 90% of current retirees say they rely on their benefits to some degree as a source of income, according to a 2023 poll from Gallup.
Among all retired workers, the average benefit amount is around $1,845 per month, as of November 2023. But it's possible to earn far more than that if you're able to snag the maximum payments. Here's exactly what those checks would look like, as well as what you'd need to do to achieve them.
How to reach the maximum benefit amount
Four main factors will affect how much you'll receive from Social Security: The length of your career, your earnings history, your full retirement age, and the age at which you begin claiming.
The Social Security Administration calculates your benefit by taking an average of your earnings over the 35 highest-earning years of your career. That number is then adjusted for cost-of-living changes, and the result is the amount you'll receive if you file at your full retirement age (FRA).
If you were born in 1960 or later, your FRA is age 67. But you can file before or after that age, too. Age 62 is the soonest you can begin taking benefits, and if you wait until age 70, you'll receive your full benefit amount based on your work history, plus a bonus each month.
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To reach the maximum benefit, you'll first need to ensure you've worked at least 35 years before you begin claiming. If you've worked fewer than 35 years, you'll have zeros added to your earnings average -- which will reduce your average and bring down your benefit.
You'll also need to reach the maximum taxable earnings limit, which is the highest income subject to Social Security taxes. This limit changes from year to year due to inflation, but in 2024 it's $168,600 per year. For context, 35 years ago in 1989, the limit was $48,000 per year.
What's the maximum benefit at ages 62, 67, and 70?
The age at which you begin claiming has an enormous effect on the amount you'll receive each month. Even if you meet all the other requirements for the max payments, filing before age 70 could knock your checks down substantially.
To receive the absolute highest payments from Social Security, you'll need to wait until age 70 to begin claiming. By filing at that age, you'll receive your full benefit amount, plus a bonus of between 24% and 32% per month, depending on your FRA. On the other hand, if you file at 62, your benefits will be slashed by up to 30%.
These reductions are permanent, too. While many people mistakenly believe that their payments will go up at their FRA if they file early, in reality, your benefit is generally locked in for life once you file (save for annual cost-of-living adjustments). It's critical, then, to ensure you're choosing wisely when deciding when to file.
If you wait until age 70 to claim, the maximum you can receive in 2024 is a whopping $4,873 per month. By claiming at age 67, the highest possible payment is $3,911 per month. And if you take Social Security at 62, the most you can collect is just $2,710 per month.
Is it really worth it to wait until age 70 to claim?
It's not easy putting off Social Security, but research shows that for the majority of older adults, it's the best financial decision.
Researchers at United Income examined retirees' claiming decisions and how those choices affected their lifetime income. They then used that data to determine how many retirees made the "optimal" choice, meaning they filed at the best age to earn as much as possible from Social Security over a lifetime.
They found that ages 62 and 63 were the worst choices financially, as they were the optimal ages for only 6.5% of retirees. Meanwhile, around 57% of retirees could have earned more over a lifetime by waiting until age 70 to claim.
The difference was significant, too. Researchers found that the average retired household misses out on around $111,000 worth of income over a lifetime by claiming at the sub-optimal age. While waiting until age 70 won't be the right move for all retirees, it often makes the most sense financially to maximize your income.
Not everyone will be able to achieve the maximum Social Security payments, and that's OK. The age at which you begin claiming can affect your payments by hundreds of dollars per month, and regardless of how much you're entitled to in benefits, making this decision carefully can still help set you up for success in retirement.
