Having a lengthy and well-paid career is necessary to be eligible for receiving the
highest attainable Social Security payout
In retirement, however, individuals who are eligible for a substantial monthly benefit may still experience a significant variation in the amount of that payment based on their decision regarding when to start receiving it.
start Social Security
.
Actually, the distinctions between taking benefits early and delaying them become more pronounced when examining the highest potential Social Security payments at ages 62, 67, and 70. These ages signify the youngest you can start receiving benefits, as well as the key points at which benefit amounts increase significantly.
full retirement age
For individuals born in 1960 or after, along with the age when your benefits reach their maximum, these figures represent three frequently chosen points to start claiming Social Security benefits. However, one particular age emerges as particularly advantageous, especially for those who have had substantial earnings over their lifetimes.
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The highest potential Social Security payments at ages 62, 67, and 70 illustrate just how significantly those additional years can impact your benefit amount.
The salary required to optimize your Social Security benefits is as follows:
To qualify for the highest potential Social Security payout, you should maintain a comparatively high income over the course of your working life.
When determining your monthly benefit, the Social Security Administration (SSA) reviews your complete work history. It adjusts each year’s income for inflation before selecting the top 35 most lucrative years from your professional life. The SSA then computes your average monthly earnings based on these figures.
The SSA incorporates your average earnings into the formula.
Social Security benefits formula
to determine your
primary insurance amount
, known as your Primary Insurance Amount (PIA). This is what you will get when you claim benefits at your full retirement age. Should you choose to begin receiving Social Security before reaching this age, your benefit payments will be lower than your PIA. However, if you postpone taking these benefits past your full retirement age, your monthly checks will increase until you reach 70 years old.
However, high-income individuals may find that not all of their earnings appear on their Social Security statement. This occurs due to the cap imposed by the SSA on the amount of income subjected to Social Security tax annually. Consequently, wages that aren’t taxed under Social Security will not contribute towards determining future retirement benefits.
The Social Security Administration modifies the highest amount of taxable income annually according to increases in average wages. Below are the figures for the past half-century representing the earning limit.
| Year | Earnings | Year | Earnings |
|---|---|---|---|
| 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 |
| 2000 | $76,200 | 2025 | $176,100 |
Source of data: Social Security Administration.
If you have exceeded that threshold for a minimum of 35 years, you could qualify for an exceptionally large Social Security benefit, potentially reaching the maximum amount possible.
The highest potential Social Security benefit you can get at ages 62, 67, and 70 is as follows:
Despite having accumulated substantial earnings over your working life, choosing the right moment to begin receiving benefits can significantly impact your financial situation during retirement. Opting for early withdrawal at 62 means you’ll get considerably lower monthly payments than if you were to delay claiming until reaching 70. However, those who choose earlier withdrawals will have an additional eight years’ worth of benefit checks, potentially allowing them to retire earlier. A common approach taken by many retirees is to balance these factors by starting to collect Social Security once they reach what’s considered their full retirement age—typically around 67.
If you kept working right up until applying for retirement benefits and consistently earned more than the maximum taxable amount throughout your career, you would probably be eligible for the highest possible Social Security benefits for someone your age. Below are the details of these maximum benefit amounts for 2025.
| Retirement Age | 62 | 67 | 70 |
|---|---|---|---|
| Maximum monthly benefit | $2,831 | $4,043 | $5,108 |
Data source: Social Security Administration.
As evident, the highest possible advantage significantly changes based on when you choose to begin receiving Social Security. At 70 years old, one could get as much as $61,296 annually, which would be sufficient to cover an ordinary American family’s yearly earnings after accounting for taxes. In contrast, starting benefits at 62 caps your maximal yearly payout at $33,972. This means such households might well have to augment their Social Security income using extra retirement funds.
Is it better to postpone receiving your benefits?
Should you be eligible for the highest potential Social Security payout, it would likely be most advantageous to delay starting your benefits for as long as you can.
If your income was substantial and you maintained at least average money management skills, you likely have some funds set aside for retirement.
retirement account
or a taxable
brokerage account
While you may need to extend your limits
withdrawal rate
Once you hit your 60s, it might be beneficial to know that you’ll have a substantial Social Security benefit waiting for you when you turn 70.
If you possess substantial retirement savings, your early and mid-60s might present an excellent chance to implement strategies aimed at minimizing your long-term tax obligations. Taking action during this period can prove beneficial.
Roth conversions
and realizing
long-term capital gains
can significantly increase your expenses once you begin receiving substantial Social Security benefits.
An additional significant rationale for postponing your benefits is if your spouse will also be eligible for them.
survivor benefits
If you die before they do, survivor benefits enable your spouse to get up to the same amount you received from Social Security before passing. Therefore, when deciding when to claim benefits, you ought to factor in both yours and your spouse’s combined life expectancies, typically suggesting that postponing benefit collection might be more advantageous.
Even if you aren’t aiming for the highest potential payout, these factors should still be taken into account. People who have average incomes but save well can also gain advantages from delaying their application by several more years, which helps them secure larger benefit amounts along with reduced taxes.
The $
22,924
The Social Security benefit many seniors entirely miss noticing.
If you’re similar to many Americans, you might be lagging several years—or even more—behind on your retirement savings. However, some lesser-known “Social Security tricks” may assist in increasing your retirement earnings. For instance: one simple strategy could net you an additional $
22,924
More every year! After mastering strategies to optimize your Social Security benefits, we believe you can retire with confidence and achieve the peace of mind everyone seeks.
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Check out the “Social Security secrets” »
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