Here are the maximum possible Social Security benefits at ages 62, 66, 67 and 70

The key to a successful retirement is making the most of Social Security. About half of households with a person age 65 or older receive 50% or more of their income from the government program, according to data analyzed by the Social Security Administration (SSA).

To receive the maximum possible Social Security retirement benefit, you need to have a long, well-paid career and wait until age 70. Even if you earn a lot, you will see a huge difference in what you can receive at age 62, 66, 67, or 70. The differences in the monthly checks of high-income earners at each of those ages show that it pays to delay receiving benefits as long as possible.

How to Maximize Your Social Security Benefits

The biggest factors that affect how much Social Security you get are how much you earn during your career and when you claim benefits. The more you earn during your career and the longer you wait to claim benefits, the bigger your monthly check will be.

When the Social Security Administration calculates your monthly benefit, it looks at your earnings history and selects your 35 highest earnings years, adjusted for wage inflation. It then calculates your average monthly earnings adjusted for inflation (AIME) during those 35 years. It plugs that number into a formula based on your year of birth that determines your basic insurance amount (PIA).

Your PIA is the amount you’ll receive if you claim benefits after full retirement age, which for most readers is between 66 and 67. If you claim earlier than your full retirement age, you’ll get less than your PIA; if you claim later, you’ll get more.

If you earn a lot, some of your income may be exempt from Social Security taxes. There is a maximum level of earnings each year that the SSA will use to calculate your earnings. This amount is adjusted for wage inflation over time. If you earn more than the maximum taxable earnings for 35 years, you may qualify for the maximum possible Social Security benefit.

Below is a table showing the maximum taxable earnings over the last 50 years.

Table source: Social Security Administration.

Earning above these thresholds throughout your working life can provide you with a great retirement, but the age you declare can have a huge impact on the size of your monthly benefit.

Here are the maximum possible Social Security benefits at ages 62, 66, 67 and 70

Even if you qualify for the maximum possible benefit, your age at which you start receiving benefits can have just as much, if not more, of an impact on the amount of your monthly benefit.

Filing as early as possible, at age 62, will result in a significant reduction in benefits compared with waiting until age 70. That means you’ll receive eight more years of monthly benefits, which could allow you to retire earlier or enjoy more early retirement years. Many retirees split the difference by claiming benefits at full retirement age, which for most readers will be between 66 and 67.

Here’s what the maximum benefits will look like at each of these key ages in 2024.

Table source: Social Security Administration.

As you can see, monthly income varies greatly depending on the age you file. A 70-year-old could receive up to $58,476 this year, while a 62-year-old could receive a maximum of $32,520. While one person has a solid middle-class income, the other will likely need to supplement Social Security with significant retirement savings.

In other words, a person who files a claim at age 70 in 2024 could receive the same monthly benefit as a 62-year-old who reached the maximum earnings while earning less than 38% of the average monthly earnings over their entire working career.

This is partly due to changes in retirement ages, but it also shows the effects of deferring benefits.

Is it worth waiting until age 70 to apply for Social Security benefits?

If your earnings were high enough to allow you to collect the maximum Social Security benefit, you are probably in a good position to retire even without Social Security.

It may be tempting to claim benefits early so you can enjoy retirement even more by adding a little extra cushion to your savings. But it may be better to draw a little more from your retirement savings early and defer benefits until later.

Few investments offer a better risk-free return than delaying Social Security. If you turn 62 this year or later, you’ll benefit from a 7.4% real compound annual growth rate (CAGR) in your monthly benefit check by delaying the eight years from 62 to 70. Keep in mind that the S&P 500 has historically returned 6.8% on an inflation-adjusted basis, and those returns come with significant risk. So, on average, you’re better off delaying benefits as long as possible.

The benefits of delaying are even greater for those with significant wealth and no immediate need for additional income. Ultimately, you can reduce your taxable income in the long run. Delaying also protects against living very long, which is more likely among the wealthy, since you will collect the increased benefit until you die.

Several studies also suggest that waiting until age 70 will optimize most retirees’ finances. A 2019 analysis by United Income found that 57% of retirees would maximize their wealth by waiting to collect benefits until age 70. By comparison, only 6.5% of retirees would take advantage of benefits until age 65. So, even if you’re not (yet) in line to receive the maximum possible Social Security benefit, you should delay collecting benefits as long as you can afford to.