Social Security has been a key part of millions of Americans' retirement finances for decades now. The role Social Security benefits play in people's retirement varies widely, but in any case, it's good to have this guaranteed income after many years of paying Social Security taxes.
You can never really have too much income in retirement, so it's understandable that many people aim to receive the maximum Social Security benefit possible. In 2024, the maximum monthly Social Security benefit is $4,873. If you have plans on receiving this amount, here are the two things you must do.
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1. Earn above the wage base limit for 35 years
To calculate your monthly benefit, Social Security looks at the 35 years when your earnings were the highest. However, not all of your earnings are considered, only up to a certain amount. This amount is called the "wage base limit," and it's the maximum amount of your income subject to Social Security taxes each year.
The wage base limit in 2024 is $168,600, so any amount earned above this is exempt from Social Security taxes and not used to determine your monthly Social Security benefit.
To earn the maximum $4,873 benefit, you must earn at least the wage base limit in each of the 35 years used to calculate your benefit. Earning below the wage base limit in any of those 35 years would disqualify you from earning the maximum possible benefit.
For instance, below are the wage base limits for the previous five years. You'll need to earn at least that much in those years to earn the maximum benefit that applies to your year of retirement, if they'll be used in your benefits calculation.
| Year | Wage Base Limit |
|---|---|
| 2023 | $160,200 |
| 2022 | $147,000 |
| 2021 | $142,800 |
| 2020 | $137,700 |
| 2019 | $132,900 |
Data source: Social Security Administration.
As you can see, the wage base limit changes almost every year (with a few exceptions), so it's important to know the year's limit if you plan to receive the maximum benefit. An increase in the wage base limit could cause you to earn below the threshold, even if you exceeded it in the previous year. This is especially true for years with a huge increase, like between 2022 and 2023, for example.
2. Delay claiming benefits until you turn 70
A large part of determining your monthly Social Security benefit is when you decide to claim. Your primary insurance amount (PIA) is the monthly benefit you'd receive by claiming at your full retirement age, but you can claim before or after that. Below are full retirement ages by birth year:
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If you decide to claim before your full retirement age, your monthly benefit will be reduced based on how many months away you are from it. If you delay claiming benefits past your full retirement age, they're increased by 2/3 of 1% monthly until you reach age 70. Monthly benefits no longer increase after 70, so that's realistically the latest you should plan to claim benefits.
To be eligible for the maximum $4,873 Social Security monthly benefit, you must earn above the wage base limit for at least 35 years and delay your benefits until 70. Doing one without the other would automatically disqualify you from receiving the maximum monthly benefit.
Most people won't receive the maximum monthly benefit
As intriguing as receiving the maximum Social Security benefit sounds, the reality is that the overwhelming majority of people won't qualify for it. Delaying benefits until 70 may be the easier of the two requirements, but the income threshold will disqualify most people.
According to the Social Security Administration (SSA), only around 6% of people earn over the wage base limit annually, and only around 20% of workers will earn above it in a single year. That should let you know how few people actually do it for 35 years.
You can check if you're on track to receive the maximum benefit by viewing your earnings record on the SSA website. You can find your reported earnings as well as your projected benefit based on claiming age.
