How to Get the Maximum Social Security Benefit
How Social Security Benefits Are Calculated
Your Social Security benefit is based on your 35 highest-earning years, adjusted for inflation. The Social Security Administration (SSA) calculates benefits using the Average Indexed Monthly Earnings (AIME) and a formula that determines your Primary Insurance Amount (PIA).
The maximum taxable earnings cap affects how much you can contribute. In 2025, only earnings up to $176,100 are subject to Social Security taxes (SSA). If you consistently earn at or above this threshold, your benefits will be higher. Additionally, the SSA adjusts this cap annually to account for inflation, meaning future retirees should monitor updates to maximize their contributions.
Key Strategies to Maximize Your Social Security Benefits
Work for at Least 35 Years
The SSA calculates benefits using the highest 35 years of earnings. If you work fewer than 35 years, zeros will be factored into the calculation, reducing your average monthly benefit. Ensuring you work at least 35 years helps maximize your payment. If possible, extending your working years beyond 35 with higher earnings can push lower-earning years out of the calculation, further increasing your benefit amount.
Maximize Your Earnings
Higher lifetime earnings result in higher Social Security benefits. If possible, aim to reach the maximum taxable earnings limit each year to secure the highest possible benefit. Entrepreneurs and self-employed individuals should ensure they report all income accurately to avoid artificially low earnings affecting their benefits. Contributions to Social Security through payroll taxes are directly tied to the benefit amount you will receive.
Delay Claiming Benefits Until Age 70
Full retirement age (FRA) is 67 for most retirees, but delaying benefits until age 70 increases your monthly payments due to delayed retirement credits. As of 2025, the maximum monthly benefit for retirees who wait until 70 is $5,108 (SSA). The increase in benefits equates to roughly 8% per year of delay beyond FRA. This strategy is especially beneficial for individuals who anticipate living well into their 80s or beyond, as they will collect significantly more in total lifetime benefits.
Optimize Spousal and Survivor Benefits
Spousal benefits allow a lower-earning spouse to receive up to 50% of the higher-earning spouse’s benefit. Maximizing the higher earner’s benefit also increases survivor benefits for the surviving spouse. A widow or widower can receive 100% of a deceased spouse’s benefit if they have reached full retirement age, making it critical to maximize the benefit of the higher-earning spouse.
Avoid Early Claiming If Still Working
If you claim Social Security before FRA while still earning income, your benefits could be temporarily reduced. In 2025, the earnings limit is $22,320; exceeding this amount before FRA results in $1 withheld for every $2 earned above the limit. However, these reductions are not permanent, as benefits are recalculated at full retirement age to include withheld amounts. Understanding how continued earnings impact benefits ensures optimal claiming decisions.
Additional Considerations for Maximizing Social Security
Cost-of-Living Adjustments (COLA)
Social Security benefits are adjusted annually based on inflation. The 2025 COLA is set at 2.5%, ensuring benefits keep pace with rising costs (SSA). While COLA increases may not always outpace inflation, they provide critical boosts to retirees’ income over time. Those who delay claiming benefits until 70 will not only receive a larger base benefit but will also see COLA increases applied to that higher amount, further enhancing long-term financial security.
Understand Tax Implications
Depending on your total income, up to 85% of your Social Security benefits may be taxable. Single filers earning over $34,000 and joint filers earning over $44,000 are subject to taxes on their benefits. This taxation threshold has remained unchanged for years, making proactive tax planning essential. Strategies like Roth IRA conversions, tax-efficient withdrawals from retirement accounts, and strategic timing of Social Security benefits can minimize taxation and maximize net retirement income.
Review Your Earnings Record
Mistakes in your Social Security earnings record can reduce your benefits. Regularly check your record through your SSA account and report discrepancies to ensure accurate benefit calculations. Earnings errors are more common than many realize and can result in permanently reduced benefits if left uncorrected. Correcting mistakes promptly ensures you receive the full amount you are entitled to at retirement.
Consider Working Part-Time in Retirement
For individuals who need additional income but do not want to claim Social Security early, working part-time can help delay benefits while supplementing retirement savings. Additionally, some retirees who return to work after claiming benefits may see their benefits recalculated upwards, as their new earnings replace lower-earning years in the 35-year calculation formula.
Creating a Personalized Social Security Strategy
Maximizing Social Security benefits requires strategic planning. Working longer, delaying benefits, and optimizing spousal benefits can increase your monthly payments. Regularly reviewing earnings records and considering tax implications can further enhance retirement security.
A personalized strategy based on your income history, health, and retirement goals can ensure you receive the highest benefits possible. Consulting with a financial advisor can provide further insights tailored to your specific situation.
For personalized tax and financial planning, contact WFP Tax Partners to learn how we can help you optimize your retirement strategy.