You may not achieve the maximum, but you may still be able to increase your profits.
President Trump has proposed a significant new tax credit aimed at retirees, though time seems to be a factor. There’s ongoing concern about the potential depletion of Social Security funds, and although Congress can act to mitigate issues, it’s uncertain if they will. If nothing changes by 2033, retirees might only receive about 75% of their promised Social Security benefits. That’s a bit alarming!
Because of this, it’s probably wise to think about maximizing your Social Security benefits. Specifically, see if you can ensure that your future benefits are as high as possible. The maximum monthly benefit set for 2025 is $5,108. Here’s how to qualify for that.
1. Work for at least 35 years
A straightforward requirement is to work at least 35 years. This is vital since your benefits are based on your highest 35 years of earnings adjusted for inflation. If you’ve only worked for 32 years, for instance, the calculation will include three zeros, which makes you ineligible for the maximum benefit.
2. Delay claiming benefits until age 70
This next criterion is attainable but may not suit everyone. You can certainly delay claiming your benefits until you reach 70 years old, but you might not want to. Here’s the deal: you can collect benefits as early as 62, but starting sooner means smaller checks. If you wait, your benefits will grow, but that means you’ll need to manage without that income for a while.
The age at which you can begin receiving “full” benefits, based on your work history, varies (66 or 67 years old depending on your birth year). The table below displays the percentage of benefits you can expect when you start collecting at different ages.
| Start collecting at: | Complete retirement age of 66 | Complete retirement age of 67 |
|---|---|---|
| 62 | 75% | 70% |
| 63 | 80% | 75% |
| 64 | 86.7% | 80% |
| 65 | 93.3% | 86.7% |
| 66 | 100% | 93.3% |
| 67 | 108% | 100% |
| 68 | 116% | 108% |
| 69 | 124% | 116% |
| 70 | 132% | 124% |
There are valid reasons to claim benefits early; sometimes you really need them. But waiting can also be beneficial, especially if you enjoy your work. There’s no one-size-fits-all ideal age to start claiming your benefits.
However, research suggests that many of us end up receiving more in total benefits if we delay until 70. Yet again, it’s not the right choice for everyone, so it’s worth taking time to consider your options carefully.
3. Earn the maximum for 35 years
To receive top Social Security benefits, you’ll need to earn the maximum taxable income for each of those 35 years. But don’t worry—it doesn’t mean you need to be a millionaire. In 2025, the maximum taxable income is set at $176,100, meaning anything above that won’t be taxed for Social Security purposes.
For example, someone making $50,000 will have all of their income taxed, while someone earning $50 million will only contribute on the first $176,100. If we all paid Social Security taxes on our full earnings, the program’s financial issues could be significantly eased.
Furthermore, once again, that $176,100 is also the cap for calculating your future benefits. You’ll need to hit that mark for 35 years, which makes the highest benefits unattainable for many people.
How to increase Social Security benefits
But here’s the silver lining: if you’re still a few years away from retirement, there are ways to boost your future Social Security benefits. For instance, increasing your earnings can lead to larger future payouts.
It’s also crucial to remember that Social Security might not entirely cover your retirement needs. As of July, the average monthly benefit was about $2,007, or roughly $24,000 annually.
So, it’s essential to have a solid retirement plan in place. It’s a good idea to estimate the income you will need for retirement and how to secure it. One effective strategy is building multiple income streams to ensure financial stability as you transition into retirement.
Most retirees with the $23,760 Social Security bonus are completely overlooked
If you’re like many Americans, you might be lagging behind on your retirement savings. Yet there’s a little-known strategy that could help boost your retirement income.
Discover how you can potentially add $23,760 to your income each year by maximizing your Social Security benefits. By utilizing the information available through reliable financial sources, you can approach retirement with confidence and peace of mind.
