Key Points
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The maximum Social Security benefit at 65 is nearly $1,400 more than the average benefit for all recipients.
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You’ll need to earn over the wage base limit for 35 years to be eligible for the maximum benefit.
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Claiming benefits at 65 will result in a 20% reduction if your full retirement age is 67.
As of the end of June, over 54.6 million people were receiving Social Security retirement benefits, with many relying on it for the bulk of their retirement income. The average benefit for recipients was $2,084, but many retirees received more.
This year, the maximum monthly benefit for someone retiring at age 65 is $3,467. And while that sounds enticing, most retirees won’t be eligible to receive it. Let’s take a look at what it takes to receive the max benefit.
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You’ll need to consistently earn above the wage base limit
The general rule is the more money you make, the more you pay in Social Security payroll taxes (up to a certain limit), and the more you receive in Social Security benefits. The taxable income limit is referred to as the wage base limit, and this year, it’s $184,500. That means any $1 earned above that is not subject to the Social Security payroll tax.
To be eligible for the maximum Social Security benefit, you need to have earned at least the wage base limit in the 35 years that the Social Security Administration (SSA) uses to calculate your benefit. If you check that box, it means you paid the maximum amount of Social Security payroll taxes in that time, setting you up to receive the maximum benefit.
In most years, the wage base limit will increase because it’s based on the national average wage index, which measures changes in average wages. Here are the past 10 wage base limits:
- 2025: $176,100
- 2024: $168,600
- 2023: $160,200
- 2022: $147,000
- 2021: $142,800
- 2020: $137,700
- 2019: $132,900
- 2018: $128,400
- 2017: $127,200
- 2016: $118,500
If any of those 10 years will be used to calculate your benefit, you would have needed to earn at least that much in the given year. Most Americans earn well below that amount, so the number of Social Security recipients who receive the maximum benefit is small.
What happens when you claim benefits at 65
Anyone born in 1960 or later has a full retirement age of 67. That’s when you’re eligible to receive your baseline benefit, referred to as your primary insurance amount (PIA).
If you claim before your full retirement age, your PIA is reduced depending on how far away you are from it. If you’re within 36 months, your PIA is reduced by 5/9 of 1% per month. Any additional month after 36 further reduces benefits by 5/12 of 1%.
Assuming your full retirement age is 67, here’s how much your PIA will be reduced by based on claiming age:
- Age 66: 6.7%
- Age 65: 13.33%
- Age 65: 20%
- Age 63: 25%
- Age 62: 30%
Whether the 20% reduction is worth it by claiming at 65 depends entirely on your situation. But in most instances, if you’re eligible for the maximum benefit, you’re in a financial position to potentially wait to claim until at least your full retirement age.
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