Most Americans would love to make as much money as possible in retirement. It opens the door to enjoying the years after leaving the workforce to the fullest.
One way to make more money in retirement is to save more. Another alternative is to boost the amount of Social Security benefits you receive.
The maximum Social Security retirement benefit is currently $5,108 per month, or $61,296 per year. What salary will you need to make to achieve this maximum benefit?
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Two important prerequisites for receiving the maximum Social Security benefit
Before we get to the salary required, let’s look at two important prerequisites to receiving the maximum Social Security benefit. Fail to do either of these things, and you won’t make the highest benefit.
First, you must work for at least 35 years in jobs that are eligible for Social Security retirement benefits. The program uses the 35 years when your earnings were the highest to calculate benefits. If you don’t have at least 35 years of employment, your benefits will be lower than they would otherwise be.
Also, not all jobs are eligible for Social Security benefits. Examples of these ineligible jobs include federal government workers hired before 1987 who are part of the Civil Service Retirement System, railroad employees who work at least 10 years in the industry (or at least five years after 1995), and some state and local government employees who are covered by employer pension plans.
The second prerequisite is that you must wait until age 70 to claim benefits. If you don’t delay, the maximum benefit someone can receive upon reaching full retirement age in 2025 is $4,018 per month, or $48,216 per year.
The magic number (for now)
Let’s assume that you worked for at least 35 years in jobs that are eligible for Social Security and you wait until age 70 to claim benefits. What salary do you need to make to receive the maximum benefit payment? The magic number is $176,100 — for now.
This doesn’t mean you would have had to make $176,100 throughout your career. However, you must at least make the Social Security earnings cap during your 35 highest-earning years. This cap has changed through the years, as shown in the following table:
| Year | Earnings | Year | Earnings |
|---|---|---|---|
| 1973 | $10,800 | 2000 | $76,200 |
| 1974 | $13,200 | 2001 | $80,400 |
| 1975 | $14,100 | 2002 | $84,900 |
| 1976 | $15,300 | 2003 | $87,000 |
| 1977 | $16,500 | 2004 | $87,900 |
| 1978 | $17,700 | 2005 | $90,000 |
| 1979 | $22,900 | 2006 | $94,200 |
| 1980 | $25,900 | 2007 | $97,500 |
| 1981 | $29,700 | 2008 | $102,000 |
| 1982 | $32,400 | 2009 | $106,800 |
| 1983 | $35,700 | 2010 | $106,800 |
| 1984 | $37,800 | 2011 | $106,800 |
| 1985 | $39,600 | 2012 | $110,100 |
| 1986 | $42,000 | 2013 | $113,700 |
| 1987 | $43,800 | 2014 | $117,000 |
| 1988 | $45,000 | 2015 | $118,500 |
| 1989 | $48,000 | 2016 | $118,500 |
| 1990 | $51,300 | 2017 | $127,200 |
| 1991 | $53,400 | 2018 | $128,400 |
| 1992 | $55,500 | 2019 | $132,900 |
| 1993 | $57,600 | 2020 | $137,700 |
| 1994 | $60,600 | 2021 | $142,800 |
| 1995 | $61,200 | 2022 | $147,000 |
| 1996 | $62,700 | 2023 | $160,200 |
| 1997 | $65,400 | 2024 | $168,600 |
| 1998 | $68,400 | 2025 | $176,100 |
| 1999 | $72,600 |
Data source: Social Security Administration. Table by author.
What you can do to maximize your benefit
Most Americans won’t be able to receive the maximum Social Security benefit. However, there are things you can do to maximize your benefit.
The prerequisites discussed earlier are important first steps. Work for at least 35 years in jobs that are eligible for Social Security and hold off until age 70 to claim retirement benefits.
What if waiting until 70 isn’t an option for you? Delay claiming benefits for as long as you can, ideally at least until you reach your full retirement age.
If you didn’t earn as much during part of your career and are making more money later, consider working longer. This will replace some of your low-earning years with higher-earning ones.
Also, regularly review your Social Security statement using your my Social Security online account to make sure your earnings history is accurate. If you spot any problems, contact the Social Security Administration to get the issues resolved.