payments

Social Security can go a long way in retirement, and for many people, benefits are a lifeline. In fact, nearly 60% of current retirees say they depend on their benefits as a major source of income, according to a 2023 poll from Gallup, and an additional 29% say it’s a minor income source.

If you’re going to be relying on Social Security to any degree in retirement, it’s wise to maximize your benefits. Everyone’s payments will differ slightly, as your benefit amount depends on factors like your earnings history and the length of your career. However, it can sometimes be helpful to see how your benefit stacks up to the average for your age.

It can also be beneficial to see how those averages compare to the maximum Social Security payments based on age. Here’s how to see where you stand — as well as how to get as close as possible to the maximum benefit.

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The average Social Security benefit by age

Your benefit amount is based primarily on three factors: your earnings history, the length of your career, and the age you begin claiming.

The Social Security Administration first takes an average of your wages throughout the 35 highest-earning years of your career. That number is then run through a complex formula and adjusted for inflation, and the result is your basic benefit amount — or the amount you’ll collect if you file at your full retirement age (FRA).

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Your FRA will depend on your birth year, but it falls between ages 66 and 67 for everyone. You can file as early as age 62, which will reduce your monthly payments. Or you can delay benefits up to age 70 to receive your basic benefit amount plus a bonus each month.

The age you begin claiming has an enormous impact on your benefit amount, and that’s evident in the average benefit amount among retirees by age.

According to the most recent data from the Social Security Administration released in December 2022, the average retired worker collects around $1,275 per month at age 62. At age 67, that average increases to $1,845 per month, and at age 70 it’s around $1,963 per month.

Source: Social Security Administration. Table by author.

While the average retired worker collects less than $2,000 per month regardless of age, the maximum payments are far higher. In 2024, the most you can receive from Social Security is a whopping $4,873 per month. However, your age will also have a dramatic impact on your maximum possible payments.

The maximum possible benefit by age

To receive the highest possible $4,873 monthly payments, there are three main requirements you’ll need to meet: work for at least 35 years, delay benefits until age 70, and consistently reach the maximum taxable earnings limit.

To calculate your benefit, the Social Security Administration uses an average of your income over the 35 years you earned the most. Working for fewer than 35 years will result in zeros added to your average to account for any time you weren’t working, which will reduce your earnings average and lower your benefit amount.

You’ll also need to consistently reach the maximum taxable earnings limit, or wage cap. This limit is the highest income subject to Social Security taxes, and the closer you can get to it, the higher your benefit will be. It changes annually to account for inflation, but in 2024, it’s $168,600 per year.

Finally, your age will have a major impact on your maximum benefit. The only way to receive the highest possible payment is to wait until age 70 to file, and claiming before that will reduce your monthly checks.

Source: Social Security Administration. Table by author.

Claiming early can substantially reduce your payments. Even if you meet all the other requirements, if you file as early as possible at age 62, the most you can receive is only $2,710 per month in 2024.

It’s not necessarily a bad thing to file early, but it is important to recognize how your age will affect your benefit amount. Whether your benefit is closer to the average or the maximum payments, choosing your claiming age carefully can help you make the most of Social Security in retirement.