The average Social Security benefit in 2023 is about $1,848 per month. That's not bad, but it's a far cry from the $4,555 maximum monthly checks. Had you qualified for these, you would've taken home $54,660 in benefits this year.
There's even more up for grabs in 2024. Below, we'll look at the maximum Social Security benefit next year and who will qualify for it.
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The three things you have to do to claim the maximum Social Security benefit
There's a three-step formula for claiming the maximum Social Security benefit, but it's not as easy as it sounds. We'll look at each step in detail below.
1. Work at least 35 years
The Social Security Administration bases your benefit on your average monthly earnings during your 35 highest-earning years, adjusted for inflation. This is known as your average indexed monthly earnings (AIME).
It's still possible to claim Social Security benefits if you've worked fewer than 35 years, but you'll have zero-income years factored in. Even one of these can shrink your benefit, knocking you out of contention for the largest possible Social Security benefit.
There's no downside to working longer than 35 years, though. This often works in people's favor because many earn more later in their careers than they did starting out. After passing the 35-year mark, those earlier, lower-earning years start dropping out of the benefit calculation.
2. Pay the maximum income subject to Social Security taxes in all 35 years
Here's the step that most people don't qualify for. To get the largest checks, you need to pay the maximum amount of Social Security payroll taxes during your 35 highest-earning years. In 2023, the Social Security Administration taxes the first $160,200 you earn. This will climb to $168,600 in 2024. And most of us won't ever earn that much in a year.
If it's any consolation, in prior years, the maximum income subject to Social Security tax was lower. But it represented an equally high bar for workers at that time. Very few ever claim the maximum Social Security benefit because earning such a high income for 35 years isn't realistic for most people.
3. Claim Social Security at 70
Though you become eligible for Social Security at 62, the government considers applying at that point early claiming. It shrinks your checks for every month you claim checks under your full retirement age (FRA) -- 66 to 67 for today's workers. Put another way, your checks continue to grow a little for each month you delay Social Security.
But this stops at 70 when you qualify for your maximum benefit. Those hoping to claim the largest possible checks must wait until then to apply. That's not always the right move, though. Those with short life expectancies, for example, are often better off applying early, even if it means accepting smaller checks.
If you're able to pull off all three of the steps above, congratulations! You can look forward to checks of $4,873 per month in 2024. That should give you $58,476 next year, which you can supplement with personal savings or income from a job.
What if you don't qualify for the maximum Social Security benefit?
Don't be discouraged if you won't qualify for the maximum Social Security benefit. Most people don't. But you can still use the information discussed above to grow your future checks if you haven't applied already. Keep working, take steps to maximize your income today, and decide on the best Social Security claiming age for you so you can get as much out of the program as possible.
