When it comes to maximizing your Social Security benefits in retirement, your work history and the age at which you claim your benefits play a crucial role.
While having a long, high-paying career can certainly boost your benefits, the age at which you decide to start claiming Social Security might have an even bigger impact on your monthly check.
For many retirees, the decision of when to start collecting Social Security is one of the most significant financial choices they will make.
Let’s break down the key details of how your claiming age can affect your monthly benefit and what you need to do to ensure you’re getting the most out of the program.
When Can You Start Claiming Social Security?
The earliest age at which you can begin claiming Social Security benefits is 62. This is the most common age for people to start receiving benefits, but it’s important to note that claiming early means you’ll get a reduced monthly benefit.
For most retirees, the second most popular age to claim is “Full Retirement Age” (FRA), which will be 66 years and 8 months for those born in 1959. However, for those who can afford to wait, delaying benefits until age 70 is often the best option to maximize Social Security payments.
Understanding the Impact of Claiming Age
If you start claiming Social Security at 62, you’ll receive a benefit that is about 25-30% less than if you wait until your FRA.
On the other hand, delaying benefits until age 70 can increase your monthly check by as much as 32%. While it might sound tempting to claim early, especially if you’re eager to retire, waiting a few years can make a huge difference in the amount you’ll receive each month.
If you choose to wait until 70, the difference in monthly benefits compared to claiming at 62 can be substantial.
How to Maximize Your Social Security Benefits?
Maximizing your Social Security benefits is not an impossible task, but it does require some planning and effort. To get the maximum possible benefit, you’ll need to work for at least 35 years and earn at or above the maximum taxable earnings limit.
This number is set annually by the Social Security Administration (SSA), and it dictates the maximum amount of income subject to Social Security tax.
In 2025, the maximum taxable earnings are $176,100, meaning if you earn that amount or more for at least 35 years, you will be in the running for the highest possible Social Security benefit. But even if you reach that limit, you won’t be guaranteed the maximum benefit unless you delay claiming benefits to age 70.
How Does the Contribution and Benefit Base Work?
Each year, the SSA publishes the contribution and benefit base, which is the amount of earnings that will count toward your Social Security benefit calculation. If you earn more than the base, any extra income above that limit will not count toward your future benefits.
Once you turn 60, your earnings are “frozen” in terms of inflation adjustments. This means that past earnings are adjusted for inflation up until age 60, but from then on, your past earnings are locked in at that level.
However, if you continue to work beyond age 60, any income you earn will still be subject to Social Security tax and will help increase your monthly benefit.
To get the most out of your Social Security, it’s essential to keep earning as much as you can throughout your career. The more you contribute to the Social Security system, the higher your monthly check will be when you start claiming benefits.
Maximum Social Security Benefits at Different Ages
Let’s take a look at how much you could potentially receive from Social Security at different claiming ages. Below is the maximum monthly benefit you can expect in 2025 at age 62, 66 (full retirement age), and 70.
| Retirement Age | Maximum Monthly Benefit |
|---|---|
| 62 | $2,831 |
| 66 (FRA) | $3,795 |
| 70 | $5,108 |
As you can see, waiting until age 70 to claim your Social Security benefits can result in a monthly check that is more than 80% higher than if you claimed at age 62. This shows just how big of an impact delaying your benefits can have.
Factors to Consider When Claiming Social Security
If you want to maximize your Social Security benefit, it’s important to think about not just your life expectancy, but also your spouse’s. If you’re married, your spouse may be able to claim survivor benefits if you pass away.
If you wait until age 70 to claim your Social Security, your spouse could inherit your benefit, which could provide them with a larger amount for the rest of their life.
Additionally, if you’re in good health and expect to live into your 80s or beyond, waiting to claim until age 70 can give you more lifetime benefits than claiming at age 62 or even age 66. However, if you’re in poor health or don’t expect to live long after retirement, claiming earlier may be a better option for you.
How to Set Yourself Up for Success?
If you plan to work until age 70 and maximize your benefits, there are a few things you can do to set yourself up for success:
- Work Hard and Earn High: To earn the maximum Social Security benefit, you’ll need to have a career that consistently pays at or above the contribution and benefit base. The more you earn, the higher your benefits will be when you retire.
- Save for Retirement: Even if you plan to wait until age 70 to claim Social Security, it’s still a good idea to save for retirement. Contribute to tax-advantaged accounts like 401(k)s or IRAs to ensure you have enough money to live comfortably before you begin claiming Social Security.
- Delay Claiming if You Can: If you’re healthy and financially secure, delaying your Social Security benefits until age 70 is one of the smartest moves you can make. The longer you wait, the higher your monthly check will be.
- Take Advantage of Employer Retirement Plans: If your employer offers a 401(k) or pension, take advantage of these plans to maximize your retirement savings. You can also contribute to IRAs to reduce your taxable income and save for the future.
Conclusion
Maximizing your Social Security benefits requires planning and strategy. While working a long, high-paying career is important, waiting until age 70 to claim your benefits can have a dramatic effect on your monthly check.
By understanding the impact of claiming age, maximizing your taxable earnings, and saving for retirement, you can ensure you’re getting the most out of your Social Security benefits. The earlier you plan, the more secure your retirement will be.