The government, through the Social Security Administration, has put a price tag on one of the most important retirement decisions that Americans face: the right age to claim their benefits. Starting in 2026, there will be a costly difference of up to $2,341 per month between filing early and waiting until age 70.
When the 2026 cost-of-living adjustment (COLA) officially takes effect in January 2026, retirees will see an average monthly check of about $2,008. That amount will be an increase of roughly $56 from what they received in 2025. They new maximum benefit, however, paints a much bigger picture. Those who meet the top requirements will be eligible to up to $5,251 per month, which is a record high for Social Security.
The $2,341 difference between those who claim early and those who wait shows that patience can literally earn you thousands more per month.
The Big Three Factors That Decide Your Benefit
Although most retirees will never qualify for the maximum payout, understanding what decides the amount of your Social Security check can help you maximize even if you are far from the top tier.
1. How Long You Work
While you need only ten years of work history to qualify for Social Security, the government calculates your benefits using the 35-highest-earning years of your career. If you have not worked for 35 years, the system replaces the blank years with zeros, which drags your total down.
This means that those who extend their careers can replace their lower-earning or blank periods with higher ones, thus boosting their benefits. Besides high salaries, the formula also rewards longevity and consistency.
2. When You Claim Your Benefits
While it is tempting to claim your benefits early at age 62, it comes at a very steep cost. For 2026, when you file at 62, your maximum benefit is $2,910 per month. If you wait until full retirement age (67), that number rises to $4,156. If you are patient enough to wait until age 70, you could earn up to $5,251 per month.
That’s a difference of $2,341 each month. That means that if you waited until 70, you could earn approximately $28,100 more in a year. If you can afford to wait until 70, that’s the price tag the government has attached to claiming early at 62.
This huge difference proves what financial experts often say: Social Security isn’t just a benefit, it’s an income strategy.
3. How Much You Earn Over Time
Your lifetime earnings also determine if you qualify for the maximum payout. To hit the new 2026 maximum benefit, you must have earned at or above the maximum taxable income limit for every year for 35 years. In 2025, the highest income subject to Social Security taxes is $176,100 and will rise to $184,500 in 2026.
Very few workers are able to consistently meet the maximum each year, and that is the main reason why most people are unable to reach the top benefit. Still, even modest increases in your income over time can still push your benefit higher.
How to Earn More, Even If You’re Not Near the Max
Although it’s difficult to earn the top benefit, the following steps can make a meaningful difference and boost your benefit considerably.
a) Work a little longer: Ensure you work for at least 35 years to eliminate zero-income years from your work history.
b) Delay claiming: Be patient enough to wait even for one or two years after hitting 62 years. This will increase your payment by hundreds per month.
c) Increase your income where possible: As mentioned earlier, the amount you earn over time determines your Social Security benefit you receive in retirement. Therefore, try as much as possible to boost your income.
Why Timing Your Claim Matters More Than Ever
The new figures from the Social Security Administration prove that timing matters. While retiring early may feel rewarding, it comes with a permanent cost. On the other hand, patiently waiting until 70 can secure a much larger Social Security benefit for life, especially when you factor in COLA.