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Maximizing Social Security retirement benefits requires a long, high-paying career and a lot of patience.
The complicated rules of Social Security make it so only a tiny fraction of beneficiaries will be eligible for the maximum monthly check in 2025. But those who work a full career and wait until age 70 to claim may still be in line for a substantial amount.
The maximum Social Security retirement benefit in 2025 will be $5,108 per month, or the equivalent of $61,296 per year. Here’s who can expect to receive that much next year.
Image source: Getty Images.
How the government calculates Social Security benefits
To determine exactly how to receive the maximum benefit next year, it’s important to understand how the government calculates Social Security benefits.
There are three main factors that influence the calculation for each individual:
- Your earnings history
- When you were born
- When you claim benefits
Your earnings history may have the biggest impact on your final Social Security check. Each year, the Social Security Administration collects taxes on your wages. It uses those wages, adjusted for increases in the standard of living, to determine how much you’ll get paid in retirement. Specifically, it takes your 35 highest-earning years and determines your average monthly earnings.
Once it has your average monthly earnings, it plugs that number into the Social Security benefits formula (which is partly based on what year you were born). The number it spits out is called your primary insurance amount (PIA), which is the benefit you qualify for when applying for Social Security the month you reach full retirement age.
Your full retirement age is also determined by the year you were born. Those born between 1943 and 1954 reached full retirement at age 66. The age increases by two months for each year you were born after 1954 until maxing out at age 67 for anyone born in 1960 or later.
Lastly, when you retire can have a significant impact on your monthly benefit. You can apply for personal retirement benefits starting at age 62. But applying before you reach full retirement age results in a penalty that reduces your monthly benefit relative to your PIA. You can delay beyond full retirement age as well to increase your benefit beyond your PIA, until it maxes out at age 70.
The maximum earnings reported to Social Security
While Social Security looks at your entire earnings history, not every penny you earn will necessarily count toward your benefit calculation. That’s because Social Security caps the amount of wages you pay taxes on in any given year. If you don’t pay taxes on the wages, they don’t count toward your earnings history.
For 2025, the earnings limit will be $176,100. Here are the earnings limits from the previous 50 years.
| Year | Earnings | Year | Earnings |
|---|---|---|---|
| 1975 | $14,100 | 2000 | $76,200 |
| 1976 | $15,300 | 2001 | $80,400 |
| 1977 | $16,500 | 2002 | $84,900 |
| 1978 | $17,700 | 2003 | $87,000 |
| 1979 | $22,900 | 2004 | $87,900 |
| 1980 | $25,900 | 2005 | $90,000 |
| 1981 | $29,700 | 2006 | $94,200 |
| 1982 | $32,400 | 2007 | $97,500 |
| 1983 | $35,700 | 2008 | $102,000 |
| 1984 | $37,800 | 2009 | $106,800 |
| 1985 | $39,600 | 2010 | $106,800 |
| 1986 | $42,000 | 2011 | $106,800 |
| 1987 | $43,800 | 2012 | $110,100 |
| 1988 | $45,000 | 2013 | $113,700 |
| 1989 | $48,000 | 2014 | $117,000 |
| 1990 | $51,300 | 2015 | $118,500 |
| 1991 | $53,400 | 2016 | $118,500 |
| 1992 | $55,500 | 2017 | $127,200 |
| 1993 | $57,600 | 2018 | $128,400 |
| 1994 | $60,600 | 2019 | $132,900 |
| 1995 | $61,200 | 2020 | $137,700 |
| 1996 | $62,700 | 2021 | $142,800 |
| 1997 | $65,400 | 2022 | $147,000 |
| 1998 | $68,400 | 2023 | $160,200 |
| 1999 | $72,600 | 2024 | $168,600 |
Data source: Social Security Administration.
But even if you earn above those limits for 35 years in your career, you still might not be in line for the $5,108 maximum possible benefit.
Who will receive the maximum possible benefit in 2025?
The retirees receiving the maximum benefit in 2025 fit one more set of criteria.
First and foremost, they were born in 1955. Remember, the year you were born plays a significant role in calculating your primary insurance amount. The various factors in the benefits formula impacted by birth year mean only people born in 1955 will be eligible for the maximum benefit next year.
Second, by the time they claim, they must have worked at least 35 years earning the maximum taxable earnings amount in each of those years.
Finally, they’ll wait until the month they turn 70 years old next year to claim benefits. That’s when retirement benefits will max out. Someone born in 1955 has a full retirement age of 66 and 2 months, and they will earn delayed retirement credits equal to 30.67% of their PIA by waiting until age 70.
As you can see, the requirements for receiving the maximum monthly benefit are quite extensive. Very few people will actually receive $5,108 per month next year.
But even if you aren’t in line for that maximum benefit, it’s worth taking the time to understand the above factors that go into calculating your personal retirement benefit. If you can keep working to reach 35 years of earnings history or collect a high income now to offset lower-earning years, you’ll increase your benefit. And if you’re younger than 70, you can still earn delayed retirement credits. Those efforts could put you in line for a larger retirement benefit than you expected, even if it’s not quite $5,108 per month.
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