Regarding Social Security, the amount you receive in retirement largely depends on your earnings history and the age at which you begin claiming benefits. Some workers qualify for the maximum Social Security retirement benefit, but even those with moderate earnings can significantly increase their monthly checks by following a few key strategies.
What Is the Maximum Social Security Benefit
The Social Security Administration sets a maximum benefit amount determined by the highest earners who contribute the maximum taxable income over their careers. In 2024, these are the maximum benefits depending on the age at which you claim:
| Age | Maximum Monthly Benefit (2024) |
|---|---|
| 62 | $2,710 |
| 67 | $3,822 |
| 70 | $4,873 |
These figures apply to workers who have earned at or above the Social Security wage cap for at least 35 years. However, if you’ve had moderate earnings, there are ways to increase your benefits even if you don’t qualify for the maximum.
How Social Security Calculates Your Benefit
Your Social Security payments are based on the most money you’ve made in the last 35 years. If you do not work for 35 years, the years without income are counted as zeros in the calculation, which can lower your Benefit. Working longer to replace these zeros with higher-earning years is one of the easiest ways to increase your Benefits, especially for moderate earners.
The SSA uses a formula to figure out your main insurance amount (PIA), which is the amount that your monthly Benefit is based on. This formula favors low—to moderate-income workers by replacing a higher percentage of lower earnings with higher earnings.
Strategies to Increase Social Security Benefits for Moderate Earners
Even if you don’t qualify for the maximum Social Security benefit, there are several ways you can boost your monthly checks:
1. Delay Claiming Benefits
Delaying your claim for benefits is the best way to get more money from Social Security. As early as age 62, you can start getting benefits, but the amount you get will always go down. Â
Every year, if you delay past your full retirement age (66-67), your benefit increases by approximately 8% due to delayed retirement credits. If you wait until age 70, you could receive up to 32% more than you claimed at full retirement age.
2. Work for 35 Years or More
Because Social Security figures out your benefit based on your best 35 years of earnings, you must have worked for at least 35 years. If you have fewer than 35 years of work history, zeros will be factored into your benefit calculation, lowering your payment. Replacing low-earning years with higher-paying work can also help.
3. Increase Your Earnings
Boosting your income in the years before retirement can directly impact your Social Security check. Even moderate earners can benefit by taking on additional work or advancing their careers during their final working years, as Social Security benefits are based on your highest-earning years.
4. Take Advantage of Spousal Benefits
Married individuals can claim benefits based on their spouse’s work record, which may result in a higher payment. If your spouse qualifies for a higher benefit than you, you may be eligible for up to 50% of their benefit amount, depending on your claiming age.
Additional Earnings Test for Early Claimants
Suppose you claim Social Security benefits before retirement and continue working. In that case, the SSA may withhold some of your benefits if your earnings exceed a certain limit. In 2024, the earnings limit is $22,320. For every $2 earned above this threshold, the SSA withholds $1 from your benefits until you reach full retirement age.
Key Takeaways
- Maximum Benefit at 70: Workers who qualify for the maximum Benefit can receive $4,873 per month by waiting until age 70.
- Delaying Benefits Pays Off: By delaying your claim until age 70, you can increase your Benefit by up to 32% compared to claiming at full retirement age.
- Work 35 Years: Ensure you work at least 35 years to avoid having zeros factored into your benefit calculation.
- Maximize Earnings: Higher earnings, especially in your final working years, can boost your lifetime benefit.
You can get the most out of your Social Security income even if you don’t make a lot of money. You can make your monthly payments a lot higher if you work longer, put off filing your claim, and plan ahead. Use these suggestions to make sure you have a better retirement.
