Want up to $4,873 per month in Social Security benefits? 3 things to do before retirement

Social Security could be a lifeline for millions of seniors, with about 60% of current retirees saying their monthly check is their main source of income, according to a 2023 Gallup poll.

Considering that the average retiree only receives about $1,900 a month in benefits, it may be difficult for most people to retire on Social Security alone or as their primary source of income as of February 2024.

However, you can also earn much more than the average amount. In 2024, the maximum benefit will be $4,873 per month, which can be a huge help even in retirement. If you’re not yet retired, there are a few steps you can take to get as close as possible to your maximum payout.

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1. More than 35 years of service

The Social Security Administration calculates your benefit by averaging your wages over the 35 years of your highest-earning career. That number is adjusted for inflation through a complex formula, and the result is the amount you will receive at full retirement age (FRA).

If you haven’t worked in 35 years by the time you start claiming, zero is added to your average earnings to take into account the years you haven’t worked. This will lower your average and lower your payout.

2. Delay in claiming benefits

FRA is the age at which you can receive 100% of the benefits you would be eligible to receive based on your earnings history. Although it varies depending on the year of birth, all people born after 1960 are 67 years old.

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You can apply before that age, as early as age 62. However, doing so will permanently reduce your benefits by up to 30%. If you delay claiming after FRA, you will receive both your benefit amount and a bonus each month.

To receive the maximum benefit amount, you must wait until age 70 to start claiming. Even if you meet all other requirements for the maximum payment, the most you can receive in 2024 is $2,710 per month if you claim at age 62. If you’re 67, the maximum is $3,911 per month. Waiting until age 70 is the only way to receive up to $4,873 per month.

3. Get as close to the wage ceiling as possible

Your earnings throughout your career will also affect your benefits. The maximum taxable income limit is the highest income subject to Social Security taxes; the closer you get to this limit, the higher your benefits will be.

To get the highest benefit amount possible, you’ll need to hit the wage ceiling consistently throughout your career. In 2024, this limit will be $168,600 per year. For context, 35 years ago in 1989, the annual cap was $48,000.

Other ways to increase your benefits

Just because you haven’t reached your maximum benefit doesn’t mean you can’t increase your monthly payment. The closer you are to one of these benchmarks, the more benefits you will receive each month.

For example, you can’t work for 35 years and wait until you’re 70 to reach the annual wage cap of $168,600. But if you can work just one or two more years, delay your benefits until your mid-60s, or increase your annual income by a few thousand dollars, all of these strategies will result in a bigger check.

Whether you qualify for the maximum benefit or not, it’s wise to make the most of your Social Security benefits. Knowing the factors that affect your benefit amount can help you do everything possible to prepare for a financially secure retirement.