In 2023, the maximum monthly Social Security benefit available to any retiree is $4,555. Very few seniors will get such a generous payment from the Social Security Administration, though, because the steps to maxing out your benefit are extremely hard to complete.
If you want a chance at the largest check available, here's exactly what you need to do.
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1. Max out your average wage that benefits are based on
Social Security benefits are directly based on average wages in the 35 years you earned the most money over your career (after adjusting wages for inflation). This means the only way to earn the maximum $4,555 monthly benefit is to have the highest average wage possible.
The only reason that there even is a maximum average wage is that Social Security caps the wages that count. Otherwise, there'd theoretically be no limit on the size of Social Security checks since people earning $10 million a year or $50 million a year would have an astronomical average wage and a huge benefit.
The term used for the maximum countable wage is the "wage base limit," and it changes over time. In 2023, it's $160,200. So, even if you earn more, only this amount would be subject to Social Security tax or counted in the benefits formula.
The thing is, if you earn less than this amount, it will be impossible to max out the average wage used to determine your benefits (assuming this year is part of the 35 years counted in your benefits formula). That means getting the maximum monthly Social Security is possible only if you earn the inflation-adjusted equivalent of $160,200 every single year for 35 years.
This step is pretty hard -- or more realistically, it's impossible -- for the vast majority of people.
2. Wait to claim your Social Security check until you are 70
If you somehow manage to get the highest average wage possible by earning the wage base limit (or more) for 35 full years, you still have another hurdle to jump through to be eligible for the maximum monthly Social Security check. This one relates to the age you claim benefits.
The benefits formula calculates your primary insurance amount, or standard benefit. But the standard benefit can be increased if you delay claiming Social Security. Delayed retirement credits raise the amount of your check each year you wait for your first payment until you reach the age of 70.
So, if you want the max $4,555 monthly benefit, you have to start with the highest possible average wage to get the highest possible standard benefit -- and then boost that benefit as much as you can by waiting until 70 to get your first Social Security check. This is another difficult thing to accomplish because you'll need to work until 70 unless you have enough savings to live on until then with no income coming in.
The good news is, you don't have to get a $4,555 monthly Social Security check to have a secure retirement -- and you probably won't. Just be sure you know what amount your payments are likely to be (about 40% of pre-retirement income) and then plan for enough savings to supplement that amount so you can have a comfortable life in your later years.
