If you’re planning for retirement, one of your key questions is how much you can earn from Social Security – what’s the maximum you can get? As of January 2024, the maximum benefit you can receive at full retirement age is $3,822 per month. But that’s only part of the story, because the real maximum benefit is actually a fair bit higher – and here’s how to get it.
The maximum Social Security check
Your maximum Social Security benefit depends significantly on the age you file for your benefit, among other factors such as your contributions to the program:
- Your maximum benefit if you file at age 62 – the youngest possible age – is $2,710 per month.
- Your maximum benefit if you file at full retirement age – between 66 and 67 – is $3,822 per month.
- Your maximum benefit if you file at age 70 – the age when extra benefits stop accruing – is $4,873 per month.
Social Security reduces benefits as much as 30 percent for those filing at age 62. On the other hand, it increases benefits by 8 percent for each year after full retirement age that you delay filing.
In contrast to these maximum amounts, the average Social Security benefit is quite a bit lower – about $1,706 per month, as of August 2023. That’s less than half of the maximum benefit for a worker starting benefits at full retirement age in 2024.
While waiting longer to file may maximize your total monthly benefit, it may not maximize your total lifetime payout from Social Security depending on your longevity. You’ll want to calculate your likely breakeven age to see when it might be best to file for Social Security benefits.
With this Bankrate Social Security calculator, you can estimate your future monthly benefit.
How are Social Security benefits calculated?
Social Security calculates benefits using a complex formula to determine your primary insurance amount (PIA) – that is, your benefit at full retirement age.
To do so, Social Security takes your 35 highest-earning years after age 21 to figure your average indexed monthly earnings. You’ll get credit only for earnings up to the Social Security wage base, which is the maximum amount of income on which Social Security assesses taxes. For 2024, the Social Security wage base is $168,600, an increase from $160,200 in 2023.
Employees pay 6.2 percent of their income up to the wage base, while their employers put up another 6.2 percent. The self-employed foot both halves of this Social Security tax.
And if you don’t have 35 years of earnings? Social Security will figure a zero in for each missing year, reducing your average monthly earnings.
The numbers from these high-earning years are summed and then indexed for inflation to determine your average indexed monthly earnings. Then Social Security applies a graduated formula based on these earnings to determine your actual payment at full retirement.
You can see the full details in this article and then run through a real-life example.
How to maximize your Social Security benefit
Based on the formula above and other Social Security rules, you have a few key ways to maximize your benefit amount:
- Earn more. You can earn more in a given year, up to the Social Security wage base, and get more credit, raising your average monthly earnings.
- Add more high-earning years to your average. Your 35 highest-earning years are counted in figuring your benefit, so working later in life, when you likely earn more, may push out lower-earnings years when you were younger or even just fill in gap years that would otherwise have no or insufficient earnings.
- Delay filing for your benefit. Your benefit will be reduced substantially if you file before full retirement age and will increase significantly if you wait as late as age 70 to file.
While you usually don’t get a second chance when it comes to Social Security, in at least two situations you can get a “do over,” allowing you to get a higher payout later.
- Suspend your benefit. If you took benefits before full retirement age and are not yet 70, you can suspend your benefit and earn credits for each month they’re suspended.
- Withdraw your benefit. If you took benefits less than a year ago and have never filed to withdraw your benefit before, then you can withdraw your benefit and it will be like you never filed at all. However, you’ll have to repay any money you’ve received.
If you’re trying to maximize your Social Security benefit, it makes sense to explore all the ways to do so. You have many levers to pull that can help you get a higher payout.
Bottom line
The maximum Social Security benefit relies on earning a high level of income over a long period, something that very few people achieve. But even if you aren’t a high earner, you can make smart moves, such as delaying filing for benefits, to increase your payout significantly.
FAQs
The maximum Social Security check
What is the maximum amount of Social Security I can receive? ›
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.
How do I calculate my maximum Social Security? ›
Average Indexed Monthly Earnings (AIME)
Up to 35 years of earnings are needed to compute average indexed monthly earnings. After we determine the number of years, we choose those years with the highest indexed earnings, sum such indexed earnings, and divide the total amount by the total number of months in those years.
What is the maximum amount taken out for Social Security? ›
You aren't required to pay the Social Security tax on any income beyond the Social Security wage base limit. In 2024, this limit rises to $168,600, up from the 2023 limit of $160,200. As a result, in 2024 you'll pay no more than $10,453 ($168,600 x 6.2%) in Social Security taxes.
How much Social Security will I get if I make $120000 a year? ›
The point is that if you earned $120,000 per year for the past 35 years, thanks to the annual maximum taxable wage limits, the maximum Social Security benefit you could get at full retirement age is $2,687.
How much Social Security will I get if I make $100,000 a year? ›
If your pay at retirement will be $100,000, your benefits will start at $2,026 each month, which equals $24,315 per year. And if your pay at retirement will be $125,000, your monthly benefits at the outset will be $2,407 for $28,889 yearly.
At what age do you get 100% of your Social Security benefits? ›
Full retirement age
If you were born in 1957 or earlier, you're already eligible for your full Social Security benefit. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.
When a husband dies, does his wife get his Social Security? ›
Social Security survivors benefits are paid to widows, widowers, and dependents of eligible workers. This benefit is particularly important for young families with children.
How do I find out how much Social Security I will get? ›
If you have a personal my Social Security account, you can get an estimate of your future retirement benefits and see the effects of different retirement age scenarios. If you don't have a personal my Social Security account, create one at www.ssa.gov/myaccount.
How do you get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
What is the Social Security cap for 2024? ›
We call this annual limit the contribution and benefit base. This amount is also commonly referred to as the taxable maximum. For earnings in 2024, this base is $168,600.
Why are Americans getting $4800 in Social Security? ›
It is estimated that the $4,800 Social Security Payment is due to go out as a result of the growing cost of living adjustment as well as inflation. This is because those with low earnings, retirees, and those with disabilities have difficulty controlling their federal costs.
How much would a millionaire get in Social Security? ›
Key Points. People who earn higher salaries get bigger Social Security benefits than those who earn less. But there's a limit to just how big benefits can grow. Even if you earned a million dollars throughout your career, your benefit would max out at $4,873.
Is it better to take Social Security at 62 or 67? ›
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
What is the highest Social Security payment? ›
The maximum Social Security check
Your maximum benefit if you file at full retirement age – between 66 and 67 – is $3,822 per month. Your maximum benefit if you file at age 70 – the age when extra benefits stop accruing – is $4,873 per month.
Is it better to collect Social Security at 62 or 67? ›
In terms of lifetime benefit optimization, age 67 was the second highest at around 10%. Between ages 62 and 67, the latter gave retired workers a higher statistical probability of maximizing their lifetime income from Social Security.
What is the highest Social Security check at age 62? ›
If you wait until age 70 to claim, the maximum you can receive in 2024 is a whopping $4,873 per month. By claiming at age 67, the highest possible payment is $3,911 per month. And if you take Social Security at 62, the most you can collect is just $2,710 per month.
How much will I get from Social Security if I make $30,000? ›
The general rule is that Social Security benefits replace about 40% of pre-retirement income. With $30,000 in annual income, that means you could receive an estimated $12,000 per year in Social Security payments, without adjusting for inflation.
