The average Social Security retirement beneficiary will receive $2,076 this month. However, some retirees will receive much more, as the maximum possible benefit for 2026 is more than $5,000 per month.
There are a number of factors that will impact exactly how much you receive, and the requirements for maxing out Social Security are tough to meet. However, understanding exactly how the government calculates your benefit and how to max it out could help you solidify your retirement plans and ensure you set yourself up well for your senior years.
Image source: Getty Images.
The biggest factors determining your Social Security benefits
There are only a handful of factors that go into determining exactly how much you’ll receive from Social Security in retirement:
- The year in which you were born
- How much you earn during your career
- The year you claim Social Security
The year in which you were born plays a major role in calculating your monthly benefit. Many people know that it can impact your full retirement age (FRA), which is the age at which you qualify for your primary insurance amount (PIA). But the year you were born also impacts the inflation-adjustment index that the Social Security Administration (SSA) uses to calculate the value of your past earnings, which can have a significant impact on your benefits.
The inflation index is tied to the year in which you turn 60. Any earnings before that are adjusted upwards so that they’re comparable to earnings from that year. However, any earnings after that year won’t get any inflation adjustment at all.
As a result, younger retirees can have higher average indexed monthly earnings from their careers as their past earnings are adjusted upward. That evens out for older retirees, however, who start benefiting from the annual cost-of-living adjustment (COLA) earlier. (Note, the COLA impacts your Social Security retirement benefits starting the year after you become eligible, regardless of whether you’re actively receiving benefits or not.)
The last factor to consider is when you claim Social Security. If you want to max out your monthly payment, you’ll have to wait until age 70 to start payments. The SSA will increase your benefit for every month you wait after you become eligible, but those increases stop after you turn 70.
The salary you need to max out Social Security
Your salary will have the largest impact on your monthly benefit of any factor above. After adjusting for inflation, the SSA takes your 35 highest-earning years and plugs them into the Social Security benefits formula to determine your PIA. However, it caps the earnings eligible for that calculation every year, and workers don’t have to pay Social Security taxes on any earnings above that level.
The SSA adjusts that maximum amount of wages eligible for Social Security for inflation every year. The cap for 2026 is $184,500. Here are the previous 40 years of the maximum Social Security earnings.
YearEarningsYearEarnings1986$42,0002006$94,2001987$43,8002007$97,5001988$45,0002008$102,0001989$48,0002009$106,8001990$51,3002010$106,8001991$53,4002011$106,8001992$55,5002012$110,1001993$57,6002013$113,7001994$60,6002014$117,0001995$61,2002015$118,5001996$62,7002016$118,5001997$65,4002017$127,2001998$68,4002018$128,4001999$72,6002019$132,9002000$76,2002020$137,7002001$80,4002021$142,8002002$84,9002022$147,0002003$87,0002023$160,2002004$87,9002024$168,6002005$90,0002025$176,100
Data source: Social Security Administration. Chart by author.
There are two important things to note if you want to maximize Social Security benefits. First, you’ll have to work for at least 35 years, earning above the maximum taxable earnings.
More importantly, however, is exactly which years you earn above that maximum. Inflation adjustments will make some years in the past worth more than others, even if you earned less in taxable Social Security wages on an absolute basis. On top of that, the increase in the wage cap keeps growing, while the inflation adjustments for past earnings stop at age 60.
That means you can keep raising your Social Security payments by continuing to work indefinitely. Technically, if you want to get the absolute maximum from Social Security, you never really get to retire.
Here’s the maximum possible Social Security benefit in 2026
As mentioned, the year you were born will have a noticeable impact on your monthly Social Security benefits. Even if you earned the same amount during your career as someone born in a different year, your benefit could differ.
As such, I’ve provided the maximum possible Social Security benefit for everyone aged 70 through 85. The table below assumes workers earned at least the maximum taxable earnings every year since 1986, maximizing their potential benefits.
Age Reached in 2026Maximum Social Security BenefitAge Reached in 2026Maximum Social Security Benefit70$5,18178$5,18471$5,29079$5,10472$5,21380$5,24273$5,07181$5,21074$5,10782$5,26375$5,06483$5,33276$5,03584$5,37077$5,12985$5,505
Data source: Calculations by author using Social Security Administration calculator.
Those maxing out Social Security are likely planning to work for a long time. If you enjoy your work and continue to perform at a high level, it may be worth pursuing the maximum possible benefit. But at that point, an extra $5,000 per month is merely icing on the cake for most.
If you’re looking to have a more traditional retirement, though, understanding how the government calculates your benefit could help you decide how much longer to work and when to start taking Social Security.
