In 2024, some lucky Americans will get a monthly Social Security check totaling $4,873. That's a whopping $58,476 in retirement income. It is also the largest Social Security check available to anyone next year.
Those Americans who get such a big payment from Uncle Sam aren't just getting it by sheer chance, though. There are specific things you must do to earn that much money from Social Security. Here's what they are.
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You must be a high earner throughout most of your career
If you want to receive the maximum monthly Social Security benefit of $4,873 in 2024, the hardest part is that you must earn the maximum income subject to Social Security tax each year.
Let's unpack that a little. For most people, the entirety of their income is subject to Social Security tax. When they get benefits, benefits equal a percentage of their average wages during their 35 highest-earning years -- with every dollar of their wage counting in this calculation.
For some people, though, that's not the case. Social Security has a "wage base limit." You won't pay Social Security taxes on any income you earn that exceeds that limit. And when your average wage is calculated for use in the Social Security benefits formula, you won't get credit for any income above the wage base limit.
Since benefits equal a percentage of average wages, the maximum benefit is available only to people who earn the highest taxable income for all 35 years that count in their benefits calculation. So, only those who earn an amount equal to (or above) the wage base limit for 35 years can get the maximum Social Security payout.
The wage base limit is generally pretty high. In 2024, you'd need to earn $168,600 or more to equal or exceed the limit, up from $160,200 in 2023. The limit is adjusted most years to account for wage growth. So, you'd essentially need to earn the inflation-adjusted equivalent of that amount for 35 or more years. This is a pretty hard thing to accomplish.
You must put off claiming Social Security until you turn 70
You're still not guaranteed the maximum monthly $4,873 Social Security check, even if you're among the country's top earners for 35 years. You have to do one more thing.
You must wait until age 70 to begin your first Social Security payment. If you claimed benefits at a younger age, you'd shrink the amount you were entitled to. In fact, the maximum benefit for Social Security claimed at age 62 is just $2,710 in 2024.
There's a simple reason you have to put off claiming benefits. For each year you wait to get your payment, up to age 70, your monthly check amount increases. That's because the system is set up with penalties for early filers and credits for late filers to try to equalize lifetime benefits no matter when you first claim them.
If your goal is to maximize your monthly income, you'll want to take your average benefit and increase it as much as you can by delaying your first check until 70. Only then can you get the largest benefit available.
You may decide it's worth doing this, but be aware that many people can't (or don't want to) work until age 70. You should have a plan for supporting yourself between the time you quit work and the time you claim those benefits.
If you can max out your earnings over 35 years and wait until 70, you're in line for a pretty big Social Security check. But you'll have to do a lot of work to get there.
The good news is that anyone can raise their benefit by putting off a claim and by trying to increase their income. So, you can help set yourself up for a more secure retirement by doing these two tasks, even if the max $4,873 is out of reach.
