Planning for your retirement is a lifelong, or rather career-long, endeavor. With the Social Security program, however, the bulk of the effort is somewhat lifted from your shoulders since all you have to do during your working years is pay into the dedicated Social Security payroll tax. So while your input is sorted out, it is claiming your output that you have to be tactical about so as to best maximize your claims relative to your situation.
In 2025, the average benefit check currently stands at around $2,000, while the highest possible benefit check comes in at $5,108 which is more than double the average. Making yourself eligible for this $5,108 check will require some strategic planning, however. Here is what you need to know about how to maximize your Social Security benefit income.
How are Social Security benefits calculated?
When your benefits are being calculated, your 35 highest earning years are taken into consideration. However, when you are paying into the payroll tax, there is also a wage cap in place. This means that any income above a certain threshold will not be considered when you are paying into the Social Security payroll tax. For 2025, the wage cap stands at $176,100.
“After we determine the number of years, we choose those years with the highest indexed earnings, sum such indexed earnings, and divide the total amount by the total number of months in those years. We then round the resulting average amount down to the next lower dollar amount,” according to the Social Security Administration (SSA).
“Working longer — when possible — has been generally accepted as good advice for a secure retirement,” as per a report by the Center for Retirement Research at Boston College. “It directly increases current income; it allows people to contribute more to their 401(k)s; it shortens the period of retirement; and, importantly, delaying claiming of Social Security results in a much higher monthly benefit.”
This, however, does not mean that the amount you will receive in benefits is a cut and dried figure. While the income you had earned during your career is the biggest determining factor of how much you will receive upon retirement, the age at which you begin claiming will also play a significant role in how much you receive as benefits.
What is the best age to claim?
When your benefits are being calculated, another factor that weighs in is the Full Retirement Age. In 2025, the Full Retirement Age is 66 years and 10 months for those born in 1959. So while you can claim benefits from age 62, you will only be considered eligible for your full benefits at Full Retirement Age. Claiming benefits early could result in a decrease of up to 30%.
On the other hand, delaying claiming or claiming “late” can result in much higher benefits. Waiting to claim until you are 70 years old will earn you “delayed retirement credits” which will significantly boost your benefit income once you do begin claiming. As noted above, the highest possible benefit check in 2025 amounts to $5,108 and in order to receive this amount, there are several requirements that must be met.
First, and arguably most importantly, your earnings for your 35 highest earning years must be at the wage cap or higher for each respective year. This means that you will have made the highest possible contribution to the payroll tax. Next, due to the Full Retirement Age which has been gradually increasing since the 1983 amendments, you will need to have been born in 1955 and turning 70 in the year 2025.
You will also need to have waited to claim your benefits until you turn 70. As such, through the combination of an income at or higher than the wage cap for 35 years, and delayed retirement credits due to turning 70 in 2025, a senior will become eligible for the maximum benefit of $5,108.