Want the Max $4,555 Social Security Benefit Check? Here's the Salary You Need.

Most retired workers depend on Social Security benefits to make ends meet. In fact, because benefits represent guaranteed income, they tend to become increasingly important as other sources of income such as retirement accounts are depleted over time. That means current workers have good reason to maximize their future Social Security payout.

However, most Americans are unclear on how to do that. Only 14% of adults surveyed by Nationwide Retirement Institute strongly agreed with the following statement: "I know exactly how to maximize my Social Security benefits."

Read on to learn what it takes to get the biggest Social Security payout, including the requisite salary.

The maximum Social Security benefit in 2023

The maximum Social Security benefit is $4,555 per month in 2023, up from $4,194 per month in 2022. The top payout typically increases each year because the Social Security benefits formula is updated annually to account for changes in the national average wage index.

The chart below shows how the maximum Social Security benefit has changed over the last decade.

Data source: Social Security Administration.

How to get the maximum Social Security benefit

Social Security typically replaces about 37% of pre-retirement income, but the precise benefit paid to a retired worker depends on both their lifetime earnings and claiming age. Specific details are provided below:

Lifetime earnings: The benefits formula uses inflation-adjusted earnings from the 35 highest-paid years of a worker's career to calculate their primary insurance amount (PIA). The PIA is the benefit a worker receives if they claim Social Security at full retirement age (FRA), which is 67 for anyone born in 1960 or later.

But there is a caveat. The income included in the benefits formula is capped by the maximum taxable earnings limit. Workers only pay Social Security taxes on income up to the taxable maximum, so any earnings beyond that threshold are excluded from the PIA calculation.

Claiming age: Eligibility for retirement benefits begins at age 62, but workers who claim Social Security before FRA receive a reduced payout, meaning they receive less than 100% of their PIA. And workers who claim Social Security after FRA receive an increased payout, meaning they receive more than 100% of their PIA. But there is a caveat here, too. Delayed retirement credits stop accumulating at age 70, so it never makes sense to claim any later.

Here's the upshot: To get the biggest Social Security payout, workers must have a salary that meets or exceeds the maximum taxable earnings limit for at least 35 years and delay retirement benefits until age 70.

The salary retired workers need to get the maximum Social Security benefit

The chart below details the maximum taxable earnings limit in each year over the past decade. In other words, the chart shows the minimum salary required to qualify for the biggest Social Security payout. Bear in mind that occasionally meeting that taxable maximum is not enough. Only retired workers who meet (or exceed) the threshold for 35 years will qualify for the maximum benefit.

Data source: Social Security Administration.

Very few Americans make enough money during their careers to qualify for the biggest Social Security payout. Last year, only 7% of workers had income that met or exceeded the taxable maximum, and the percentage who hit that mark in 35 different years is even smaller.

Don't be discouraged by that information, though. Understanding how lifetime earnings and claiming age impact Social Security benefits is still valuable. Current workers can use that information to increase their retirement income -- for example, by ensuring they work for at least 35 years or by delaying benefits until age 70 -- even if they don't qualify for the biggest payout.