Social Security Benefits for Seniors: Secrets to Receiving a $5,108 Payment
In the year 2025, the maximum monthly Social Security benefit for those who have reached their full retirement age (around 66-67) is estimated to be approximately $4,043 to $4,018, depending on the source. However, by delaying the claim of these benefits until the age of 70, retirees can significantly boost their monthly income.
According to financial advisors, by waiting until the age of 70, a retiree can receive a 30.7% increase in benefits, resulting in a monthly payment of $5,108. This increase is a result of the delayed retirement credits, which are added to the monthly benefit.
The calculation of Social Security benefits is based on an individual's highest 35 years of earnings. Therefore, consistently earning at or above the maximum taxable wage base, which is expected to be around $176,100 in 2024, is essential for qualifying for the maximum benefit.
It's important to note that most people do not qualify for the maximum benefit due to the fact that few earn the maximum taxable amount continuously for 35 years and delay claiming benefits until the age of 70.
Sources such as SmartAsset, Mercer Advisors, and The Week all confirm these facts. For instance, SmartAsset states that to qualify for the maximum benefit, one would have to postpone benefits until age 70 and earn the maximum taxable amount for at least 35 years. Mercer Advisors, on the other hand, confirms that if a retiree delays retirement until age 70, their maximum benefit would be $5,108. The Week further clarifies that Social Security benefits are based on "average indexed monthly earnings over your 35 highest-earning years."
A table from Kiplinger shows the impact of age on the Social Security benefit, with $2,831 at the age of 62, $4,018 at the full retirement age, and $5,108 at the age of 70 in 2025.
In conclusion, to receive the highest monthly Social Security benefit, retirees must wait to claim benefits until the age of 70 and earn all possible delayed retirement credits. It's also crucial to earn an income equal to or above the wage base limit for at least 35 years to qualify for the maximum $5,108 monthly Social Security benefit.
Personal finance expertise advises that to capitalize on the highest Social Security benefit, retirees should delay claiming benefits until the age of 70, which, according to the given text, could result in a monthly payment of $5,108. Therefore, setting aside and earning money throughout one's career to reach the maximum taxable wage base ($176,100 in 2024) for at least 35 years becomes essential for qualifying for this amount.
