While the average monthly Social Security retirement benefit is just shy of $2,000, the maximum monthly benefit is $5,108. Here's how to know if you're eligible for the largest benefit amount available.
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You've worked for 35 or more years
Your Social Security benefits are calculated based on how much you earned during your 35 highest-earning years. If you're unsure how much you've earned through the years, visit my Social Security, where you'll find a year-by-year earnings breakdown.
Let's say you've worked for fewer than 35 years. The calculations used to determine your monthly benefit will include zeros for any years you didn't work. Those zeros lower your overall earnings average.
You typically get a break from Social Security taxes
Currently, the maximum income subject to Social Security tax is $176,100. No matter how early in the year your income hits $176,100, you're done paying Social Security tax until the following calendar year. You need to have earned at least the relevant maximum income for 35 years.
This is nothing new. According to the SSA, a maximum amount of income has always been subject to Social Security taxes. For example, in 1937, you'd only pay taxes on the first $3,000 in earnings. By 2011, that amount had grown to $106,800.
If you've routinely earned enough to max out how much you pay in Social Security tax, you could be eligible for the largest benefit when you retire.
Note: Because the maximum income subject to Social Security tax changes annually, it could be a challenge to calculate whether your income is on course to qualify for the highest Social Security benefit. You don't have to do the calculations yourself. The my Social Security site clearly shows you how much you'll be eligible for each month up to age 70.
You plan to delay benefits
When you plan to claim Social Security benefits determines whether you'll qualify for the largest payout. The only way to receive the maximum allowable benefit ($5,108 a month in 2025) is to delay claiming Social Security until age 70.
While you can begin collecting Social Security as early as 62, doing so comes at a cost. Claiming benefits at 62 rather than waiting until your full retirement age of 66 years and 10 months or 67 years (depending on the year you were born) will reduce the amount you receive by 30%.
For example, if you're due to receive a monthly Social Security check for $3,000 at age 67 but claim benefits at 62 instead, your checks will be reduced by $900, to $2,100. If you're married and your partner plans to claim spousal benefits based on your work record, their monthly check will also be permanently reduced.
If you're aiming for the highest possible Social Security benefit, you'll want to wait until age 70 to make your first claim.
Did you know that you can change your mind?
If you claim Social Security benefits, but realize you've made a mistake, you can reverse your decision. According to the SSA, if it's been less than 12 months since you started benefits, you can ask for benefits to stop and pick up again when you're ready (and when your benefit amount has increased). Here's what you need to know about the process:
- You must make the request in writing.
- You must repay everything you've received up to that point.
- You may reapply when you're ready for benefits to resume at a higher amount.
- You can only request a stop one time in your lifetime.
Securing the largest Social Security paycheck boils down to over three decades of high earnings and delaying your retirement. However, you don't have to receive the highest possible benefit to thrive in your golden years. Regularly contributing to savings and retirement accounts, paying off debt, and carefully planning a post-retirement budget can all contribute to a low-stress retirement.
