The maximum monthly Social Security benefit in 2023 would provide you with $4,873 per month in retirement benefits. If this sounds like a lot, that's because it's the benefit available only to some of the top earners in the country.
If you're hoping to be one of those retirees with the max Social Security benefit, here's what you would need to do to make that happen.
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Earn a very high income for 35 years
Social Security bases your benefits on average wages over the 35 year period when your earnings were the highest. The maximum benefit, therefore, is available to people who earned the highest possible average wage for a full 35 year period.
Now, you may be wondering how there could be a maximum wage. After all, people can literally earn hundreds of millions of dollars annually. The reason is because Social Security capped the amount of income that's subject to Social Security tax and that's counted when determining how much you'll receive in monthly benefits.
In 2024, the maximum earnings that are taxed and counted in your benefits calculation are $168,600. This number changes over time as it's indexed to inflation. You'll need to earn the inflation-adjusted equivalent of that amount (or more) for every one of the 35 years included in your benefits calculation to get the max monthly Social Security benefit.
As you can see, that's a pretty high income. Not many people earn that amount for 35 years. But, if you want the max Social Security benefit, that's what you'll need to do.
Put off claiming your benefits to max out delayed retirement credits
If you earn the highest countable salary for 35 years, you're on track for the max Social Security benefit but you aren't there yet.
Maxing out your average wage will get you the largest standard benefit, which is the Social Security payment you would receive if you retired right at your full retirement age. But you can actually increase your standard benefit even further by earning delayed retirement credits.
Delayed retirement credits raise your retirement benefit by 2/3 of 1% per month for every month you wait to get your first payment beyond full retirement age. You can earn these credits until the age of 70.
If you want the maximum possible Social Security benefit, you have to start with the largest standard benefit and apply the most possible delayed retirement credits to it. So, you have to wait until 70 to get your first Social Security check. This can also be difficult to do because many people must retire before age 70. If you're one of them, you'd have to rely solely on savings to cover your living expenses until you could finally claim the largest Social Security check available at 70.
Accomplishing these tasks is undoubtedly difficult, but you would be rewarded with a pretty hefty Social Security income if you do them. The good new is, if you can't get the max benefit, you can still increase your own personal benefit by raising your income, working for a full 35 years (or longer) and putting off claiming Social Security as long as possible to max out the delayed retirement credits you can earn.
