Thanks in part to the highest adjustment for inflation in decades, the maximum monthly Social Security benefit a person retiring in 2023 can receive is a whopping $4,555 a month. It’s an amazing headline number, but it’s also something of a fantasy. very Few people qualify for that largest check. After all, to get it, you have to earn at least the maximum Social Security amount (currently $160,200) each year for at least 35 years, and then wait until you’re at least 70 to start collecting.
It’s highly unlikely that someone will achieve “all of the above” to qualify for that maximum amount. Still, it makes sense to understand what it takes to reach that goal. That way, you can make the best decisions to get the most out of your current trajectory and maximize the value of the benefits you earn throughout your career.

Image Source: Getty Images
your best 35 years indexed, covered Earnings
When filing for Social Security collection, the program considers both your annual earnings worked in eligible jobs and the national average wage for that year. This allows you to treat your recently-earned money more the same as compared to the money you earned when wages in general were low before inflation took a terrible toll.
Finally, social security highest Income from indexed jobs over 35 years. If her tenure is less than her 35 years, the record will contain some zeros. Conversely, if the eligible job is more than her 35 years, Social Security uses her 35 years (up to the annual cap after index calculation), the highest of those years, to determine benefits. increase.
What this means is that it doesn’t matter if you work 35 or 40 years before you retire if you’ve exhausted your salary that covers your entire career. On the other hand, if you’ve been striving for a higher income over time, an extra year or he could work for a higher salary level could make a substantial difference in your benefit levels.
Age of collection makes a big difference
In addition to your income record, another important factor that Social Security considers in determining your benefits is your age at which you start receiving benefits. You can start at age 62, and the longer you wait until age 70, the more money you can collect each month. This is a trade-off, and you can choose to get more checks in a month or larger checks in fewer months.
The difference can be quite large. Suppose you were born after his 1960s. Benefits for full retirement age will be $2,000 per month. If you retire at age 62, your benefits will be reduced by $600 to $1,400 each month. Conversely, if you wait until you’re 70, your profit increases by $480 to $2,480 per month. That’s a difference of over $1,000 a month, and it’s a big hit on anyone’s budget.
Still, the challenge is that I’ll have to turn 70 before I can collect that outsized amount.
Whether it’s by keeping a job, drawing on savings, or a combination of both is largely up to you. Nevertheless, it is important to recognize that people’s participation in the labor force tends to decline with age.Some of it is due to planned retirement, but some is caused by people Can not keep working for some reason. So, at least if he plans to work until he’s 70, it’s a good idea to have plenty of cash on hand in case plans change.
Get started now and boost your prospects
As long as you are still working and under the age of 70, there is a good chance you can take steps to increase your Social Security benefits. A max profit of $4,555 is more fantasy than reality, but it helps a little.
However, considering the system of social security, Year To make a meaningful difference in your profit figures. So if you want to get closer to that cap, start planning now to maximize your chances of bringing home more monthly checks for retirement.
Chuck Saletta has no positions in any of the stocks mentioned. The Motley Fool has no positions in any of the companies mentioned. The Motley Fool’s U.S. headquarters has a disclosure policy.