The maximum Social Security benefit in 2024 is a whopping $4,873 per month. But even if you have the earnings history to qualify for that maximum, don't expect to get it if you've only recently become eligible for Social Seceurity. You need to wait until you're 70 to receive the largest possible benefit.
You can still get a sizable monthly check if you claim as soon as you're eligible though. Here's the maximum benefit at age 62 and what you have to do to qualify for it.
Image source: Getty Images.
What do you have to do to earn the maximum Social Security benefit?
There are three main factors that influence the size of your Social Security checks. They are:
- The number of years you've worked
- Your average monthly income during those years
- Your age at sign-up
The Social Security Administration bases your benefit on your average monthly income, adjusted for inflation, over your 35 highest-earning years. You can still receive benefits if you've worked fewer than 35 years, but you'll have some zero-income years shrinking your average. The result of this calculation is known as your average indexed monthly earnings (AIME).
To get the largest possible checks, you need the largest possible AIME. That means earning the maximum income subject to Social Security taxes in at least 35 years. In 2024, that means earning $168,600 or more. This limit was lower in previous years, but it still represented a substantial income all the same.
The government plugs your AIME into the Social Security benefit formula and determines your primary insurance amount (PIA). But to qualify for this amount, you must apply at your full retirement age (FRA). That's between 66 and 67, depending on your birth year.
When you claim early, the government reduces your PIA to determine your final benefit. You lose 5/9 of 1% per month for the first 36 months you claim early. Those who apply even earlier lose an additional 5/12 of 1% per month. As a result, claiming at 62 shrinks your checks by 25% to 30%, depending on your FRA.
What's the maximum Social Security benefit at 62?
The maximum Social Security benefit a 62-year-old recipient can receive in 2024 is $2,710 per month. That's a far cry from the overall maximum of $4,873, but it's still a substantial sum. It would earn you more than $32,500 per year.
Unfortunately, most workers won't qualify for that amount due to the high income requirements necessary to obtain them. But now that you understand a bit about how the government calculates Social Security benefits, you can leverage that information to grow yours as much as you can.
First, aim to work at least 35 years to avoid zero-income years in your benefit calculation. Working even longer could be helpful. Most people earn more later in their careers than they did starting out. After the 35-year mark, these more recent, higher-earning years push earlier, lower-earning years out of the benefit calculation, resulting in larger checks.
Trying to boost your income during your career can also be helpful, even if you won't come close to the ceiling on Social Security payroll taxes. Every dollar counts here.
Finally, you don't have to claim Social Security right at 62. This could be the right move if you have a short life expectancy or your finances don't permit you to wait. But often, delaying Social Security is the path to the biggest lifetime benefit.
Every month you delay Social Security increases your checks, and this doesn't stop when you reach your FRA. Beyond FRA, you'll grow your checks by 2/3 of 1% per month until they max out at age 70.
Even if you cannot delay that long, waiting a few months can permanently increase your Social Security checks. Weigh all your options and decide on the claiming age that feels best to you.
