Maximizing your Social Security: What you need to know

As retirement approaches, you may be wondering the maximum Social Security benefit you can get. The maximum benefit depends on the age you retire. The highest monthly Social Security benefit for individuals retiring at full retirement age is $4,018 per month (over $48,000 annually) in 2025. But if you can afford to delay, the maximum benefit may be much higher than that. Here's what you should know.

The timing of when you choose to claim your Social Security benefits impacts the amount you receive each month. Here's a breakdown of maximum benefits in 2025 depending on your age.

• Age 62: You can begin claiming Social Security benefits as early as 62. However, you won't receive 100% of your benefits. In 2025, the maximum amount is $2,831 per month.
• Full retirement age: This depends on the year you were born. For those born between 1943 and 1954, it's 66, and it increases in two-month increments until becoming age 67 for those born in 1960 or later. In 2025, the maximum amount at full retirement age of 67 is $4,018 per month.
• Age 70: At age 70, you can receive 132% of your monthly benefit (assuming an FRA of 66), and it won't increase any further. The maximum monthly amount in 2025 is $5,108.

For a more personalized estimate, the SSA has a calculator to help estimate your potential benefits.

The average Social Security benefit is around $1,976 per month—less than half of the maximum benefit if you started claiming at FRA. You may wonder why these actual benefit amounts come out so much lower than the maximum possible benefits. These are largely affected by factors like your lifetime earnings and the age at which you start collecting. For example, 61% of Social Security claimers began drawing before their FRA. So, the average amount may be significantly weighed by reduced benefits.

Before you start planning for your Social Security benefits, it's important to understand how they're calculated.The Social Security Administration (SSA) determines your benefits based on your highest 35 years of earnings in the workforce. The SSA funds your benefits through a Social Security tax taken from your paychecks. The calculations are the same if you're self-employed, own your own business or work for someone.

After determining your 35 highest-earning years, the SSA adjusts these earnings to compensate for inflation and calculates the average. This number is known as your average indexed monthly earnings (AIME) and is used to determine your primary insurance amount (PIA), which is the base amount you'll receive monthly if you start collecting benefits at your full retirement age.

See how maximum taxable earnings may affect your benefit -->

Your full retirement age depends on your birth year. If you were born in 1960 or later, it's age 67. You'll be entitled to 100% of your calculated benefit when you reach this age. If you claim benefits before then, your monthly Social Security income will be less. If you wait longer, the amount increases until you reach 70.

You'll need to earn 40 credits to qualify for Social Security benefits. In 2025, you must have wages of $1,810 to earn a single credit, and you can earn up to four credits per year. Generally, it takes about 10 years of work to accumulate the required credits through working and paying Social Security taxes.

Once earned, the credits stay, even if you stop working for a period or change jobs. These credits are only needed for eligibility; they don't affect the amount of your retirement benefit.

Reaching the maximum Social Security benefit often requires a combination of consistently high earnings and delaying your claim. However, even if you don't meet all the criteria for the maximum benefit, there are strategies you can use to ensure you're getting the most out of Social Security.

Here are a few approaches to consider:

To qualify for the maximum benefit, you must consistently earn at or above the Social Security maximum taxable earnings limit throughout your career. In 2025, this limit is $176,100. It's important to note that you'll need to maintain income at the earnings limit (which is indexed for inflation) for 35 years because SSA considers only your highest-earning years in its calculations. However, even if your income is below this level, increasing your salary during your career can boost your benefits.

The SSA bases your benefit calculation on your 35 highest-earning years. If you've worked for less than 35 years, zeros are factored into the calculation, which can lower your average indexed monthly earnings and your benefit. Continuing to work for 35 years can help maximize your benefits. In addition, earning just the minimum required for credits, which is $7,240 in 2025, can help avoid years with zero income.

One of the most effective ways to increase your Social Security benefit is to delay claiming it. Once you reach your full retirement age, you'll receive 100% of your benefit. However, each month you wait past your full retirement age, your benefit increases by a certain percentage. If you wait until you're 70 (with an FRA of 66), you'll receive 132% of your benefit. So, if you don't earn the wages to receive maximum Social Security benefits, even a slight delay past your full retirement age can increase your retirement income. However, it may not be the right strategy for everyone.

While delaying your claim can lead to larger monthly benefits, deciding when to start receiving Social Security is personal. It's crucial to weigh various factors and consider your circumstances before choosing when to claim.

Consider asking yourself the following questions:

• What are my financial needs and goals for retirement? Do you need Social Security income to cover essential expenses, or do you have other sources of retirement income, such as a pension, annuity or significant retirement savings? Claiming early may be the right choice if you need the income.
• What is my health status? If you're in good health and have a family history of people living well into retirement, delaying could result in a larger total benefit amount over your lifetime. However, if you have health concerns, claiming benefits earlier may better fit your needs.
• Do I plan to keep working? If you plan to work while receiving benefits, your earnings could impact your benefit amount. Be sure to understand Social Security earning limits and how they may affect your decision.
• What is my risk tolerance? Delaying your claim is a bet on a longer life expectancy. Are you comfortable with the risk of not receiving as much in total benefits if you pass away sooner than expected?
• What are the financial implications for my spouse or dependents? If you have a spouse or dependents who may rely on your Social Security benefits, it's crucial to consider their needs. Delaying your claim could provide them with a higher survivor benefit.

Carefully considering these questions and evaluating your circumstances can help you decide the best time to claim Social Security.

Understanding your maximum Social Security benefit and the various strategies for claiming it can pave the way for a more secure retirement. While maximizing your benefits is a worthy goal, the best path is the one that helps meet your unique financial situation and personal needs.

A Thrivent financial advisor can provide personalized guidance to help you understand how Social Security affects your retirement plans and help you make decisions that align with your goals.