Want to maximize your Social Security payout? This is what you should know.
Social Security payment amounts can vary wildly from person to person, and that's because how much you get depends on two major factors that also vary from person to person. The first thing that plays a role in your monthly payment is what age you apply for benefits, and the other is set across the course of your working career. We'll explain below.
There's a cap on how much you can receive each month from the Social Security Administration, so it's important to understand what can help you maximize the amount you receive when applying. Once you apply, outside of the annual COLA increase, your expected payout is essentially set for the rest of your life, though there are a couple of caveats.
Below, we'll dive into what factors play a role in determining your Social Security payment and what you can do to maximize your monthly payment before you apply.
If you're curious about how much you're set to receive when you retire, here's how to sign up for a My Social Security account and estimate your retirement benefits.
How much money do I need to make to get the maximum benefit?
You're not automatically entitled to the maximum Social Security benefit since multiple factors are considered in determining how much you'll receive. The SSA takes your highest 35 working years of earnings and your age when you begin collecting benefits.
To receive the highest Social Security benefits, you'll have to earn at least the maximum taxable amount annually. For 2025, that's $176,100. In 2015, the amount was $118,500. Any earnings made over the maximum amount isn't taxed and won't count toward your total earnings.
What's the highest amount of Social Security money I can get each month?
Here's how much you can make each month in 2025, broken down by age. Age 62 is the earliest at which you can apply.
Age 62: $2,831
Age 65 to 67 (full retirement age): $4,018
Age 70: $5,108
The gap in pay from age 62 to 70 is $2,277, which means you can double your benefit by waiting those eight years. One thing to keep in mind is that once you're 62 and not collecting benefits, your payment amount will increase slightly month by month, so holding off even a few more months will yield a larger payout for you.
It wasn't long ago that people were applying for benefits as soon as they were eligible to, but according to Joel Eskovitz, senior director of Social Security and savings at the AARP Public Policy Institute, that's changing.
"We've seen a trend away from applying at 62, and educating people about the program has helped. There will always be people who apply at 62, either from sickness or lack of job opportunities, but it does seem like there's been a shift away from this."
How does the COLA increase affect my benefits?
When you're no longer working and are receiving benefits, your payment amount is essentially set for the rest of your life, which is why some people choose to wait as long as they can before applying for Social Security. However, beneficiaries can look forward to the annual COLA adjustment for a boost in their checks.
The 2.5% COLA increase for 2025 is lower than the jump in previous years but does signal a cooling in inflation. 2024's COLA was 3.2%, which was preceded by 2023's massive 8.7% increase. So, whether it's a big jump or a small one, you can pretty much always expect to get a boost to your monthly benefit checks every year.
For more, check out the Social Security payment schedule and the Social Security and SSDI cheat sheet.
