There are millions of Americans who rely on Social Security as their primary source of income during retirement. Unfortunately, not every beneficiary receives the same amount of benefits. There is only a small group of retirees that actually make it to receive the maximum Social Security benefit which is $5,251 per month in 2026.
Yes this amount sounds wonderful, but it doesn’t come easy. You need work and plan for it.
How Social Security Actually Works
In order to understand how to get the maximum out of your Social Security benefits, you need to understand how it is calculated. Your highest 35 years of earnings is used to calculate your average monthly benefit which is adjusted for inflation.
If you worked fewer than 35 years, the Social Security Administration (SSA) fills in the missing years with zeros.
So, to get the most money, you need to have:
- Worked at least 35 years,
- Earned the maximum taxable income each year, and
- Started claiming benefits at the age of 70 years.
These three things are what separate the $5,251 club members from everyone else.
Step One: Work at Least 35 Years
Social Security calculates your benefits on your highest 35 years of earnings. If you don’t have 35 years of earnings, then the SSA will fill the missing years with zero. This will result in your average being decreased.
On the brighter side of things, you can fix this. If you work more than 35 years, and earn more, your benefits will increase. This is because the higher years will take the place of the lower ones in the system’s calculation.
In short, the longer you work, the more you can boost your Social Security payout.
Step Two: Earn the Maximum Taxable Income
This is one is the more difficult one, you need to earn the maximum taxable earnings limit for 35 years straight in order to get the maximum Social Security benefit.
Even though this may be difficult, it can be made easier the more you earn. So, taking up extra work or seeking higher paying jobs will assist in growing your benefit as time goes by.
Step Three: Wait Until Age 70 to Claim
The other option is waiting until age 70 to start collecting your Social Security benefits. Yes you can indeed start collecting benefits at age 62 but be mindful that your benefits will be permanently reduced. However, if you wait until Full Retirement Age (FRA) you will receive 100% of your benefits. Should you wait until age 70, you will receive the maximum possible benefit as your benefits will increase by approximately 8% for each year you wait until age 70.
This extra patience is one of the main reasons people in the $5,251 club get such large checks.
Why Most People Will Never Get There
There are many reasons as to why people may not be able to reach the maximum amount:
- They don’t meet the 35-year earning average
- They don’t earn at or above the taxable income limit every year.
- They start collecting benefits before reaching FRA.
Smart Ways to Boost Your Social Security — Even If You Don’t Earn Six Figures
There are a few smart moves that can increase your benefit:
- Try to work a few more years so that you can replace your low-income years with higher-earning ones.
- Look into additional work to increase your income.
- If possible, wait until FRA or even age 70 to start claiming benefits.
- Married couples can plan together to maximize their combined benefits.
The Bottom Line
It is important for beneficiaries to plan ahead and make wise decisions that will ensure they receive the maximum possible benefit. The goal is to ensure a peaceful and financially secure retirement.