Skip to main content
Retirement Planning

How to Get the Maximum Social Security Benefit

By May 9, 2023No Comments

What’s the biggest possible Social Security check a retiree can receive? For 2023, it’s $4,555 per month1 if you retire at age 70—far more than the national average of $1,827.2 But very few people qualify for the maximum benefit that would total $54,660 a year. Here are a few tips for getting the most out of your benefit.

Be a High Earner

To get the maximum benefit possible, you must have earned the maximum taxable income for 35 years. For 2023, for example, the maximum amount of income that’s subject to Social Security tax is $160,200. A mere 6% of workers earn more than the taxable maximum in any given year.3

Have a Long Career

To pocket the maximum benefit, you’ll need to have been employed for at least 35 years. Social Security benefits are calculated based on the 35 years in which a person earned the most income. If a taxpayer has worked for fewer than 35 years, the years without earnings are counted as zeros, which can lower the average earnings used to calculate the benefit.

Delay Receiving Your Benefit

Social Security benefits can be claimed as early as age 62. However, the benefit increases by a certain percentage for each year that you delay claiming benefits beyond your full retirement age, up to age 70. Note that no further increase in benefits happens if you wait past age 70 to receive your benefit. This is called the delayed retirement credit. The percentage of the delayed retirement credit varies based on the year you were born. For those born in 1943 or later, the delayed retirement credit is 8% per year for each year you delay receiving your benefits beyond your full retirement age, up to age 70. For example, if your full retirement age is 66 and you delay receiving your benefits until age 70, your monthly benefit will increase by 32% (8% per year for four years).

Ensure Accurate Earnings Records

Since Social Security benefits are based on your earnings history, it’s important to make sure that the earnings records maintained by the Social Security Administration are accurate. Taxpayers can check their earnings history by creating an account on the Social Security website or by contacting the Social Security Administration.

Don’t Earn Too Much

If a Social Security recipient who works is under full retirement age for the entire year, the Social Security Administration deducts $1 from their benefit payments for every $2 earned above the annual limit. The limit for 2023 is $21,240. Once workers reach full retirement age, Social Security deducts $1 for every $3 earned above a different, higher limit—$56,520 for 2023.4

Talk to Your Wealth Advisor

Whether you merit the top payout or not, Social Security benefits can make up a meaningful percentage of retirement income even for wealthy individuals. Your wealth advisor can help you arrive at the best strategy for you on balance with your other sources of retirement income.

It’s important to note that delaying receiving your benefits is not necessarily the best option for everyone. You should consider your individual circumstances, such as your financial needs, health and life expectancy, before deciding when to start receiving your monthly benefit.

Footnotes

1“What is The Maximum Social Security Retirement Benefit Payable?”
2What is the average monthly benefit for a retired worker?
3 “Research, Statistics & Policy Analysis
4Receiving Benefits While Working

This article is intended for informational and educational purposes only. The views expressed do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal financial advice or a solicitation to engage in a particular strategy. The information and any opinions contained herein are based on sources of information deemed reliable, but we do not warrant the accuracy of the information. Please consult your tax and financial professional before making any financial-related decisions.

AdvicePeriod is another business name and brand utilized by both Mariner, LLC and Mariner Platform Solutions, LLC, each of which is an SEC registered investment adviser. Registration of an investment adviser does not imply a certain level of skill or training. Each firm is in compliance with the current notice filing requirements imposed upon SEC registered investment advisers by those states in which each firm maintains clients. Each firm may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by an advisor with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about Mariner, LLC or Mariner Platform Solutions, LLC, including fees and services, please contact us utilizing the contact information provided herein or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you invest or send money.

For additional information as to which entity your adviser is registered as an investment adviser representative, please refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) or the Form ADV 2B provided to you. Investment adviser representatives of Mariner, LLC dba Mariner Wealth Advisors and dba AdvicePeriod are generally employed by Mariner Wealth Advisors, LLC. Investment adviser representatives of Mariner Platform Solutions, LLC dba AdvicePeriod, are independent contractors.