Working a long and highly compensated career is a prerequisite for receiving the maximum possible Social Security benefit in retirement. But even those who qualify for a big monthly check can still see a massive difference in the size of that check depending on when they decide to start Social Security.
In fact, the differences between claiming early and claiming late are amplified when you look at the maximum possible Social Security benefits at ages 62, 67, and 70. Those represent the earliest age you can claim benefits, the full retirement age for anyone born in 1960 or later, and the age at which your benefits max out, respectively. They are three of the most common ages to claim benefits, but one stands out as an excellent choice, especially for high earners.
The maximum possible Social Security benefits at 62, 67, and 70 show how much difference a few years of waiting can make.
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Here's the salary you need to maximize Social Security
If you want to be in line for the maximum possible Social Security benefit, you need to earn a relatively high salary throughout your career.
When the Social Security Administration (SSA) calculates your monthly benefit, it looks at your entire earnings history. Each year of earnings gets adjusted for inflation, and it then select the 35 highest-earning years from your career. From there, it calculates your average monthly adjusted earnings.
The SSA plugs your average earnings into the Social Security benefits formula to determine your primary insurance amount, or PIA. That's the amount you'll receive by claiming benefits at full retirement age. If you decide to start Social Security early, you'll receive less than your PIA. But if you wait, you'll receive a bigger check for each month you delay up until age 70.
But high earners might not see all of their income show up on their Social Security statement. That's because the SSA caps the amount of income subject to Social Security tax each year. And if you don't pay any Social Security tax on those wages, it also won't go toward your earnings for the sake of calculating your retirement benefit.
The SSA adjusts the maximum taxable earnings each year based on average wage growth. Here are the last 50 years of the earnings cap.
| Year | Earnings | Year | Earnings |
|---|---|---|---|
| 1976 | $15,300 | 2001 | $80,400 |
| 1977 | $16,500 | 2002 | $84,900 |
| 1978 | $17,700 | 2003 | $87,000 |
| 1979 | $22,900 | 2004 | $87,900 |
| 1980 | $25,900 | 2005 | $90,000 |
| 1981 | $29,700 | 2006 | $94,200 |
| 1982 | $32,400 | 2007 | $97,500 |
| 1983 | $35,700 | 2008 | $102,000 |
| 1984 | $37,800 | 2009 | $106,800 |
| 1985 | $39,600 | 2010 | $106,800 |
| 1986 | $42,000 | 2011 | $106,800 |
| 1987 | $43,800 | 2012 | $110,100 |
| 1988 | $45,000 | 2013 | $113,700 |
| 1989 | $48,000 | 2014 | $117,000 |
| 1990 | $51,300 | 2015 | $118,500 |
| 1991 | $53,400 | 2016 | $118,500 |
| 1992 | $55,500 | 2017 | $127,200 |
| 1993 | $57,600 | 2018 | $128,400 |
| 1994 | $60,600 | 2019 | $132,900 |
| 1995 | $61,200 | 2020 | $137,700 |
| 1996 | $62,700 | 2021 | $142,800 |
| 1997 | $65,400 | 2022 | $147,000 |
| 1998 | $68,400 | 2023 | $160,200 |
| 1999 | $72,600 | 2024 | $168,600 |
| 2000 | $76,200 | 2025 | $176,100 |
Data source: Social Security Administration.
If you've earned above that limit for at least 35 years, you'll be in line for a very big Social Security benefit, possibly even the maximum possible.
Here's the maximum possible Social Security benefit at age 62, 67, and 70
Even if you've earned high wages throughout your career, deciding when to claim benefits can make a big difference in how you spend your retirement. Claiming at 62 results in a much smaller monthly check compared to waiting all the way until age 70. At the same time, you'll receive eight extra years of checks, which could enable you to call it quits sooner. Many retirees decide to split the difference and wait until their full retirement age, around age 67, to start collecting benefits.
If you continued working right up until claiming retirement benefits, earning above the maximum taxable earnings throughout your career, you're likely in line for the maximum possible Social Security benefits for your age. Here's how the maximum benefits differ in 2025.
| Retirement Age | 62 | 67 | 70 |
|---|---|---|---|
| Maximum monthly benefit | $2,831 | $4,043 | $5,108 |
Data source: Social Security Administration.
As you can see, the maximum benefit varies widely depending on the age you decide to start Social Security. A 70-year-old can receive up to $61,296 in annual benefits. That's enough to replace the household income of the average American family, when you factor in taxes. By comparison, someone who decides to claim benefits at 62 maxes out their potential benefit at $33,972 per year. That household will very likely need to supplement their Social Security with additional retirement savings.
Should you delay your benefits?
If you're in line to receive the maximum possible Social Security benefit, it's probably in your best interest to wait as long as possible before you start Social Security.
If you earned a good living and had even mediocre financial habits, you probably have some retirement savings in a retirement account or a taxable brokerage account. While you might have to stretch your withdrawal rate in your 60s, it can be worth it knowing you have a big Social Security check to fall back on once you reach age 70.
If you have significant retirement savings, your early and mid-60s could be a great opportunity to make some valuable moves to reduce your long-term tax liability. Making Roth conversions and realizing long-term capital gains can become much more expensive once you start collecting a big Social Security check.
Another big reason to delay your benefits is if you have a spouse that will qualify for survivor benefits if you pass away before them. Survivor benefits allow your spouse to receive tup to he same amount you were receiving from Social Security prior to your death. As a result, you should consider the joint life expectancy of you and your spouse in your claiming decision, which usually tilts the calculation in favor of delaying benefits.
Even if you're not in line for the maximum possible benefit, these are all things to consider. Even median earners with good savings habits can benefit from a few extra years of waiting to position themselves for a bigger benefits check and a lower tax bill.
