Social Security provides benefits for about 54 million retirees and their family members. The size of your monthly Social Security check depends on your lifetime earnings, when you claim benefits and the year you become eligible.
If you earned the maximum taxable income each year beginning at age 22 and claimed benefits at age 70 in 2026, the largest possible monthly Social Security benefit would be $5,181 before any federal or state taxes.
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What’s the most you can receive in Social Security benefits?
You can start claiming Social Security at 62, but your benefits will be reduced each year you get a check before you reach Full Retirement Age (FRA). For people born in 1959, the FRA is 66 and 10 months. For anyone born in 1960 or later, it’s 67.
If your FRA is 67:
- If you claim benefits at 62 (the earliest eligible age), your maximum monthly benefit would be $2,969.
- If you claim at 67, your FRA, your maximum monthly benefit would be $4,152.
- If you wait until 70 and earn delayed retirement credits, your maximum monthly benefit would be $5,181.
Very few workers will receive anywhere near $5,181, though. The average Social Security check was just $2,083 per month in May 2026 , equivalent to just shy of $25,000 per year.
The max payout works out to $62,172 a year — almost exactly the median annual salary for a full-time worker, according to 2026 Q1 data from the US Bureau of Labor Statistics.
To qualify for the maximum benefit, you’d generally need to earn at least the maximum income subject to Social Security taxes throughout your working career. Social Security bases benefits on your highest 35 years of earnings.
Is Social Security enough to live on?
In most cases, no.
As the Social Security Administration explains in its “Understanding the Benefits” guide: “Social Security was never meant to be the only source of income for people when they retire.” The program is designed to replace only part of a worker’s pre-retirement income, with personal savings, pensions and other retirement income making up the difference.
Even so, a substantial share of retirees depend heavily on Social Security. According to the Congressional Research Service, 13.9% of beneficiaries ages 65 to 69 receive at least 90% of their household income from Social Security. That rises to 16.7% among those ages 70 to 74 and 26.9% among those age 80 and older.
Other ways to fund your retirement
Social Security replaces only about 40% of pre-retirement earnings for the average worker, making other retirement savings an important part of most retirement plans.
Retirement accounts
About 72% of private-sector workers have access to employer-provided retirement benefits, typically a 401(k) account. If you have access to a workplace retirement plan, contribute at least enough to earn the full employer match if one is offered. Say you make $100,000 each year and contribute 6% of your pre-tax income, at the end of 12 months you’ll have $6,000. And if your company offers a 4% match dollar-for-dollar, that’s an extra $4,000 in “free” money.
When your budget allows, consider increasing your 401(k) contributions over time to max it out. Workers 50 or older can add additional catch-up contributions, and if you’re 60 to 63, you’re eligible for “super” catch-up contributions, subject to IRS annual limits.
Your 401(k) plan is sponsored by your employer so, if you change jobs, you can’t contribute anymore. An individual retirement account (IRA) isn’t tied to your workplace, though, so you can continue contributing as long as you have eligible earned income and meet the IRS contribution rules.
Major brokerage firms such as Fidelity and Charles Schwab offer traditional and Roth IRAs. Fidelity has no minimum investment requirement to open many IRA accounts, while Schwab offers commission-free trading for U.S.-listed stocks and ETFs.
Fidelity Investments
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity’s promotions page for the latest offers here.
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity’s mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Bonus
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades and no transaction fees for over 4,000 mutual funds
- Offers extensive retirement planning tools
- Users can get on-demand advice from a professional advisor/Schwab expert
- Robo-advisor Schwab Intelligent Portfolios® available as a no-fee automated service option (with Premium version available for a fee)
- Award-winning thinkorswim® trading platforms and all their cutting-edge tools are now available at Schwab.
- 24/7 customer support access by phone or chat
- Charles Schwab offers over 300 brick-and-mortar branches across the U.S. for in-person support
Cons
- Specific transactions may require commission fee
- Robo-advisor Schwab Intelligent Portfolios Premium charges a one-time planning fee of $300, then a $30 per month advisory fee. For that price, you get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching your goals
Annuities
Interest in annuities has soared in recent years, as baby boomers worry about outliving their retirement funds and pensions become less common.
You can fund an annuity with a lump sum or through a series of regular payments. The money grows either at a fixed or variable rate, or is tied to a market index like the S&P 500, with limits on gains and losses.
You can set up your annuity to receive payments every month, every quarter or even every year — for a set term (like 15 or 20 years) or for the rest of your life.
If you choose a lifetime income option and live longer than expected, the total payments you receive could exceed the amount you originally invested. What happens to any remaining value in the annuity when you die depends on the type of annuity and any guarantees you choose. (You may be able to have payments go to your surviving spouse.)
A $300,000 lifetime annuity might pay roughly $1,700 to $2,000 per month for someone retiring in their mid-60s, although the exact amount depends on your age, current interest rates, the insurer and the features you choose.
Investments
Dividends, bond interest, CD earnings, rental income and other investments can help supplement your retirement income and, over time, build wealth that supports your financial goals.
Vanguard is a popular choice for long-term investors thanks to its low-cost index funds, retirement planning tools and broad lineup of mutual funds and ETFs, including target-date retirement funds.
Vanguard
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Vanguard account, but minimum $1,000 deposit to invest in many retirement funds; robo-advisor Vanguard Digital Advisor® requires minimum $100 to enroll.
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock and ETF trades; zero transaction fees for over 3,000 mutual funds; $20 annual service fee for IRAs and brokerage accounts (waived with at least $50,000 in qualifying Vanguard assets or by opting into paperless statements); robo-advisor Vanguard Digital Advisor® charges approximately 0.15% net advisory fee annually (after fund revenue credits; 90-day fee waiver for new clients).
Bonus
Investment vehicles
Robo-advisor: Vanguard Digital Advisor® IRA: Vanguard Traditional, Roth, Rollover, Spousal and SEP IRAs Brokerage and trading: Vanguard Trading Other: Vanguard 529 Plan
Investment options
Stocks, bonds, mutual funds, CDs, ETFs and options
Educational resources
Retirement planning tools
Pros
- No commission fees for stock and ETF trades
- No transaction fees for over 3,000 mutual funds
- One of the largest ETF and mutual fund offerings available, with an average expense ratio of 0.07%
- Robo-advisor Vanguard Digital Advisor® available with 90-day fee-free trial and approximately 0.15% net annual advisory fee after that
- Three portfolio strategies available through Digital Advisor: all-index, active/index, and ESG
- Vanguard Personal Advisor® offers access to a team of financial advisors starting at $50,000; dedicated CFP access available at $500,000 through Personal Advisor Select®
- Vanguard 529 Plan helps you save for college early on
- Excellent customer service with phone and email access Monday through Friday
Cons
- $20 annual service fee for IRAs and brokerage accounts (waived at $50,000 in qualifying assets or with paperless statements)
- Vanguard Digital Advisor® requires $100 minimum to enroll and charges approximately 0.15% net advisory fee after 90-day trial
- Digital Advisor portfolios invest only in Vanguard funds (no access to third-party ETFs)
- Basic trading platform compared to competitors; limited research and data tools
- No cash management account
Reverse mortgage
If you have substantial equity or own your home outright, you may be a good candidate for a reverse mortgage. A lender provides a lump sum, a series of payments or a line of credit for you to access, and as long as you live in the home as your primary residence and continue to meet the loan’s requirements, you generally won’t have to make monthly mortgage payments.
The principal, interest and fees are due in full when you sell the house, stop using it as your primary residence or pass away.
A traditional Home Equity Conversion Mortgage (HECM) that’s backed by the FHA is available to homeowners 62 and older, but private banks offer reverse mortgages for borrowers as young as 55 (with eligibility varying by lender and state).
Taking out a reverse mortgage reduces the equity you have in your home over time because interest and fees are added to the loan balance. And if you can’t keep up with maintenance or make property tax and insurance payments, your lender can foreclose.
A reverse mortgage can also reduce the home equity you leave to your heirs. It’s important to discuss your plans with family members so they understand how the loan will be repaid and what options they’ll have when the home is eventually sold.
You can borrow against the equity accrued in your home with a reverse mortgage
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Health Savings Account
If you have a high-deductible medical plan, a Health Savings Account is a great way to cover healthcare costs in retirement. Contributions are made pre-tax through payroll or may be tax-deductible if made directly to an HSA, your money grows tax-free and, provided you use them on medical expenses, withdrawals are tax-free, too.
Eligible expenses include Medicare Part B, Part D and Medicare Advantage premiums, as well as copays, lab fees, prescriptions, contact lenses and certain transportation costs related to medical care.
HSA contributions roll over year after year and can grow indefinitely. And unlike 401(k) plans, HSAs are fully portable — you can take them with you if you change jobs or retire. After age 65, the funds can also be used for non-medical expenses, in which case they’re taxed as ordinary income and there’s no penalty for withdrawing.
You can open an HSA through your employer or directly with a bank, brokerage or specialized HSA provider such as Lively or HealthEquity. However you open your HSA, you must be enrolled in a qualified high-deductible health plan (HDHP). You can’t be enrolled in Medicare or another non-HDHP plan and you can’t be claimed as someone’s dependent.
Lively HSA SMALL
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. There are no minimum balance fees for a Lively HSA.
Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.
Products
HSA: Health Savings Account (HSA) FSA: Flexible Spending Account (FSA) HRA: Health Reimbursement Arrangement (HRA) Brokerage and trading: Schwab Health Savings Brokerage Account and HSA Guided Portfolio Other: Lifestyle Spending Account (LSA), Medical Travel Account (MTA) and COBRA & Direct Bill.
Investment options
Investments available through Schwab Health Savings Brokerage Account and HSA Guided Portfolio
Educational resources
Extensive tools, calculators, and industry-leading, in-depth research covering HSAs, FSAs, HRAs, Lifestyle Spending, Medical Travel Accounts and other health and wellness resources.
HealthEquity HSA SMALL
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. There is no minimum balance to participate in HealthEquity’s cash account. In order to invest in mutual funds, your HSA cash balance must meet a minimum threshold of $1,000.
Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.
Products
HSA: Health Savings Account (HSA) FSA: Flexible Spending Account (FSA) HRA: Health Reimbursement Arrangement (HRA) Brokerage and trading: Mutual funds Other: Dependent Care, Commuter, Lifestyle, COBRA, Direct Billing, Premium Only Plans
Investment options
HealthEquity offers access to 3 options for investing in mutual funds: AutoPilot, GPS and Self-driven
Educational resources
HR insights, case studies, and industry-leading in-depth research covering HSAs, FSAs and other popular benefits.
How much of my income is subject to the Social Security tax?
Social Security is a social insurance program funded primarily through payroll taxes. Because benefits are capped under the program’s formula, Congress also limits the amount of earnings subject to the Social Security payroll tax.
It changes annually, based on changes in average national wages. In 2026, the maximum taxable earnings is $184,500.
Any income above that isn’t subject to the Social Security tax:
- If you earned $184,500 in 2026, all $184,500 would be subject to the Social Security payroll tax.
- If you earned $250,000, only the first $184,500 would be subject to Social Security tax; the remaining $65,500 would not.
With the trust fund Social Security relies on projected to run out as early as 2032, several legislative proposals would raise or eliminate the taxable earnings cap to increase Social Security revenue.
How is Social Security calculated?
The Social Security Administration calculates your retirement benefits by reviewing your lifetime earnings and averaging your 35 highest-earning years into a monthly amount known as your Average Indexed Monthly Earnings (AIME).
Your AIME is run through a progressive formula to determine your Primary Insurance Amount (PIA), or the benefit you should receive when you reach your FRA.
The formula applies different percentages to portions of your income, known as “bend points,” to help ensure that Social Security replaces a larger share of earnings for lower-income workers than for higher-income workers.
The payout you receive is then adjusted based on your age when you start claiming benefits:
- Claiming at FRA: You receive 100% of your calculated PIA.
- Claiming early (62 to FRA): Your benefits are reduced for each month you claim before your FRA.
- Delay claiming after FRA: You earn credits that increase your monthly check by a percentage (about 8% per year) for every month you wait past your FRA, through age 70.
FAQs
What’s the most you can get from Social Security?
In 2026, the maximum monthly Social Security retirement benefit you can receive is $5,181, but only if you delay claiming until age 70. If you claim at your full retirement age, it’s $4,152. If you start claiming at 62, the most you could receive is $2,969.
How many people receive the maximum Social Security benefit?
While there are no solid numbers, very few people hit the Social Security benefits ceiling. The nonpartisan Committee for a Responsible Federal Budget estimates that about 1 million people receiving Social Security benefits collect $50,000 or more a year — about 1.64% of all beneficiaries.
The maximum Social Security benefit is about $62,172 annually, so the portion that reaches that amount is even smaller.
How much will I get from Social Security when I retire?
Your monthly benefit is determined by how many years you worked, your income in your top earning years and the age and year you decide to retire. If you know your income from your working years to date, you can use Social Security’s online calculator to estimate your benefits.
Are Social Security benefits taxable?
Social Security payments have been subject to federal income tax since 1984, but whether your benefits are taxed depends on your combined income, including your adjusted gross income, any nontaxable interest and half of your Social Security benefits. If your combined income is below $25,000 ($32,000 for married couples filing jointly), your benefits generally aren’t taxable. If it’s between $25,000 and $34,000 ($32,000 to $44,000 for married couples), up to 50% of your benefits may be taxable. Above those thresholds, up to 85% of your benefits may be taxable.
Only eight states tax Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.
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