Key Points
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To receive the maximum monthly benefit, you must wait until 70 to claim Social Security.
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Delaying benefits past full retirement age leads to 8% per year in delayed credit until age 70.
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Even if you can’t reach the top benefit, you can take steps to maximize your benefits.
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The maximum Social Security benefit for someone who claims at age 70 is $5,181, more than double the average Social Security benefit. However, reaching the number requires decades of high earnings and planned timing of your claim. Here’s what you need to know.
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What the 1% are doing
Fewer than 1% of Americans receive the maximum benefit, but that doesn’t mean it can’t be done. Those who receive a monthly benefit of $5,181 have earned delayed retirement credits, which increase their benefits by about 8% per year after full retirement age (FRA). Had these Social Security recipients not waited until age 70, their monthly benefit would have been roughly $4,178 at FRA. Waiting allowed them to maximize the benefit they would have otherwise received.
A well-paid career
To achieve the highest possible benefit, a worker must have earned at or above the Social Security taxable-earnings cap for at least 35 years. Currently, the maximum income you must pay Social Security on is $184,500. Once you’ve met that cap, you’re done paying into Social Security for the year.
The tricky bit is this: The Social Security Administration (SSA) calculates your benefits using your highest 35 years of earnings. To receive maximum benefits, your highest 35 years must be at or above the Social Security taxable-earnings cap for that specific year. The cap changes every year based on the National Average Wage Index.
Fewer than 35 working years and lower-earning years pull down the average and therefore lower your maximum benefit. Still, waiting until 70 to file your claim can make a world of difference, especially if you’re concerned about taxes or healthcare in retirement.
What you can do to maximize your own benefits
Even if you don’t earn enough to reach the taxable-earnings cap, you can take steps to maximize the benefits you receive when it’s time to claim Social Security. For example:
- Work at least 35 years: Set a goal to work and pay into Social Security for 35 years or more, so there are no $0 earnings years included in your benefit calculation.
- Increase your earnings when possible: Seek promotions, negotiate raises, move to better-paying roles, or start a side business to boost earnings.
- Build additional sources of income: Retirement accounts, particularly Roth IRAs or Roth 401(k)s, offer tax-free withdrawals and may give you the flexibility to postpone Social Security.
- Choose a favorable claim age: Delay claiming benefits as long as you can. If your health and finances allow, the closer you can get to 70, the better. Each year you delay, between ages 67 and 70, adds roughly 8% to your benefits due. In other words, a Social Security benefit scheduled at $2,500 at age 67 jumps to $3,100 at 70.
- Review your “my Social Security” earnings record regularly: Look for missing or inaccurate wage entries, because these mistakes directly reduce your benefit calculation. If you find errors, report them to the SSA.
Even if you never reach the peak benefit, you can move your check closer to it.
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