If you want to maximize your Social Security benefits in retirement, you'll need to work a long, high-paying career. But the age at which you claim your benefits can have an even bigger impact on your monthly check than how much you earned.
Many retirees opt to claim Social Security as soon as they become eligible at age 62. The second most popular claiming age is full retirement age, which will be 66 and 8 months for most retirees this year. But most individuals will maximize their potential monthly benefit by waiting until age 70.
If you look at the maximum possible benefit at each of those ages, the discrepancy between claiming as soon as possible and truly maximizing your Social Security becomes abundantly clear.
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How to put yourself in line for the maximum possible benefit
There are several factors that go into maximizing Social Security, but if you want to get the most possible out of the program for you, the path is relatively simple.
Every year, the Social Security Administration publishes what's called the contribution and benefit base. That number is the maximum amount of earnings subject to Social Security tax. You won't pay the 6.2% Social Security tax on any earnings above that amount. (Your employer adds another 6.2%.)
Importantly, though, that limit also puts a cap on how much of your earnings count toward calculating your Social Security benefit when you retire. Because of that cap, it's possible to determine an absolute maximum benefit.
If you want to maximize your potential Social Security benefit, all you have to do is earn above the contribution and benefit base for at least 35 years during your career. For reference, the maximum taxable earnings this year is $176,100. I said it was simple, not easy.
Since the Social Security Administration adjusts the contribution and benefit base each year for inflation, that means the maximum possible benefit will increase each year. However, a small detail about Social Security is that your earnings stop receiving inflation adjustments once you reach age 60. At that point your previous earnings get frozen in time, but you can increase your benefit by continuing to work and earning more than previous years. That means if you really want the maximum possible benefit for your age group, you'll have to continue working indefinitely.
Here's the maximum possible benefit at 62, 66, and 70
If you're up for the challenge and continue to work in a high-paying career into your 60s or possibly until 70, here's what you can expect in 2025 for maxing out your taxable earnings for Social Security.
| Retirement Age | 62 | 66 | 70 |
|---|---|---|---|
| Maximum monthly benefit | $2,831 | $3,795 | $5,108 |
Data source: Social Security Administration.
As you can see, retirees who waited until 70 to claim Social Security this year could receive a monthly benefit that's more than 80% higher than those who claim benefits as soon as possible at age 62.
That discrepancy is slightly more than what any individual can expect to see by delaying benefits due to the ongoing shift in full retirement age. Retirees turning 62 this year will get their full retirement benefit at age 67, but those who turned 70 this year became eligible at age 66 and 2 months. Each month you delay benefits beyond your full retirement age, you'll receive a slight bump in your monthly check. And if you can afford to wait to take benefits, it's usually worth delaying and receiving that bigger check.
Here's what to do if you're planning to max out Social Security
If you were blessed with a long and highly compensated career, you'll be in line for a big Social Security benefit. More than likely, your best financial move is to wait until 70 to max out your monthly check.
If you're in average health or better and can expect to live into your 80s or beyond, you'll likely receive more in lifetime benefits by waiting until age 70 than if you claim at 62, 66, or your full retirement age. On top of that, you'll likely leave more for your spouse, who may be eligible for survivor benefits. If you pass away, your spouse can take over collecting your benefit instead of their own. As a result, it's important to consider both your and your spouse's life expectancies in your claiming decision.
There are two ways to set yourself up to successfully delay Social Security. You can continue working until age 70. In fact, if you want the absolute maximum possible benefit that's a requirement. Or you can settle for a slightly smaller benefit and strategically save for retirement.
Saving for retirement doesn't have to be complicated. Just set aside a piece of every paycheck into a brokerage account and invest it. You could invest in any number of things, but one of the best long-term investments for investors who want to keep things simple is a broad-based index fund. The Vanguard S&P 500 ETF is a favorite for many, including Warren Buffett, thanks to its strong record of tracking the market index and the low fees it charges.
But high earners could get a lot out of tax-advantaged retirement accounts like a 401(k) or IRA. If your employer offers a 401(k), you can contribute up to $23,500 ($30,500 if you're 50 or older) in 2025. Your employer might throw in some money as well. If you don't have an employer-sponsored retirement plan, you could contribute up to $7,000 ($8,000 if you're 50 or older) to an IRA.
Taking advantage of those tax-deferred accounts can save you thousands in taxes while you're working and sustain your retirement while you're waiting to collect Social Security.
