What is the maximum social security benefit for a single person

How we make money

Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.

Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access
BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access

The average retired worker receives a Social Security benefit of $1,658 per month, or $19,896 per year. And Social Security is designed to replace about 40% of the average person's pre-retirement income, so it isn't likely to cover your financial needs in retirement all by itself.

Many retirees get significantly more than the average benefit. In fact, the maximum possible Social Security benefit is $4,194 per month, or $50,328. This amount would certainly go much further toward creating financial stability in retirement.

Image source: Getty Images.

So, how do you get the maximum? Here's a rundown of what you would need to do to achieve the maximum Social Security benefit, and the steps you can take to boost your own retirement income if you can't qualify for the absolute maximum.

The maximum Social Security benefit and how to get it

In order to achieve the maximum possible Social Security benefit, three things need to be true:

1. You've worked for at least 35 years in Social Security covered jobs. The Social Security benefit formula takes your 35 highest-earning years into consideration, and if you work fewer years, zeros will be averaged into calculation. Most retired workers check this box without much trouble, and many work 40+ years before retiring.
2. You need to have earned the Social Security taxable maximum in all 35 of your top-earning years. Social Security tax only applies to a certain amount of wage income each year, and it is indexed for inflation over time. For example, in 2022, the Social Security taxable maximum is $147,000. In 2010, it was $106,800. In 2000, it was $76,200. You can see the taxable maximum for other years on the Social Security Administration's website. In simple terms, to get the maximum benefit, you need to have been a high earner throughout the bulk of your working years.
3. You need to wait until age 70 to start collecting your Social Security benefit. Simply earning lots of money year after year will give you an above-average benefit, but not the maximum. At full retirement age (between 66 and 67 depending on the year you were born), the current maximum benefit is $3,345 per month. Americans can start their benefits at any point between ages 62 and 70, and not surprisingly, the majority claim their benefits before reaching full retirement age. However, the longer you wait, the larger your initial benefit will be. In order to max it out, you have to wait until you turn 70 to start receiving checks.

How to maximize your Social Security benefit

Obviously, achieving the maximum possible Social Security benefit isn't practical (or even possible) for most people. Many people have to leave the workforce before age 70 for health or other personal reasons, for example, and even if you dramatically boost your income now, prior years where you earned less than the taxable maximum will prevent you from getting the max benefit.

However, even small changes can have a significant impact on your Social Security benefit. For example, picking up a side hustle to increase your income will improve your lifetime average. And it's important to realize that you don't have to delay your retirement by much to have an impact -- each month you wait to claim benefits results in an increase. For example, if your Social Security benefit would be $2,000 per month at your full retirement age of 67, waiting just three months would get you an extra $40 in retirement income every month.

The bottom line is that it isn't necessary to focus on achieving the maximum Social Security benefit. But it can be tremendously beneficial to your financial security in retirement to take reasonable steps to increase yours.

The Motley Fool has a disclosure policy.