Strategies for Retired Workers to Maximize Social Security Benefits
Thursday, 28 March 2024, 08:02
How Social Security benefits are calculated for retired workers
The Social Security Administration uses three variables to calculate benefits for retired workers: work history, lifetime earnings, and claiming age.
Work history
- Workers must spend at least 35 years in the workforce to maximize benefits.
Lifetime income
- Workers must have earnings equal to or greater than the taxable maximum for at least 35 years.
Claiming age
- Delayed retirement credits stop accumulating at age 70, so claiming then earns the largest benefit.
How retired workers earn the maximum Social Security benefit
Learn why very few workers qualify for the maximum Social Security benefit and how delaying claiming can significantly boost payouts.
Qualifying for maximum benefit
- Earning the maximum benefit requires working for at least 35 years.
- Staying in the workforce beyond 35 years can replace low-earning years.
Delaying claiming until age 70 can increase benefits by 77% for workers born in 1960 or later.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.