How Much Salary Do You Need for the Max $4,873 Social Security Benefit?

Sunday, 17 March 2024, 13:30

To receive the maximum Social Security retirement benefit of $4,873, you must earn $168,600 annually for 35 years. However, hitting the earnings thresholds alone is not enough to guarantee the highest benefit. Retiring at age 70 is crucial for maximizing your monthly benefit, as retiring earlier results in lower payouts. Achieving the maximum benefit is a challenging goal, but working 35 years, earning as much as possible, and delaying benefit collection until age 70 can help you get closer to the maximum benefit amount.

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The Magic Numbers

To even have a shot at receiving the maximum Social Security benefit when you retire, you'll need to earn $168,600 this year. So is this the magic number to make? Yes and no. It is the earnings threshold you must achieve in 2024. However, the maximum changes nearly every year. Because of how Social Security retirement benefits are calculated, you must make the maximum salary for 35 years.

1973 - $10,800
1974 - $13,200
...
2023 - $160,200
2024 - $168,600

Hitting the Earnings Thresholds Won't Be Enough

So if you earn the "magic amount" for 35 years, will you be guaranteed to receive the maximum Social Security benefit when you retire? No. Hitting the earnings thresholds isn't enough by itself. The maximum $4,873 monthly benefit in 2024 is only paid to individuals who wait until age 70 to retire. If you retire at your full retirement age (FRA) this year, your maximum monthly benefit would be $3,822.

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.

The Magic Numbers

Hitting the Earnings Thresholds Won't Be Enough

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