Do you want the maximum $4,873 Social Security benefit? Here’s the salary you need | The motley fool

In 2024, the maximum monthly Social Security check is $4,873. No retiree can receive checks over that amount, and a small minority of seniors receive payments equal to that.

There is a maximum Social Security benefit because benefits are based on a percentage of earnings — but only earnings up to a certain level are counted. Anyone who has earned the maximum countable earnings for a full 35 years can max out their benefit — as long as they also expect to claim their checks by 70.

Here’s what you’ll need to earn to be among the elite few with $58,476 in annual Social Security income.

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Your earnings must equal or exceed the base salary limit

Social Security benefits are equal to a percentage of your inflation-adjusted earnings in the 35 years your earnings were highest. However, a base salary cap applies each year. Earnings above that threshold are not subject to Social Security tax and are also not included in the benefit calculation formula.

The wage base cap is intended to ensure that very high earners are not paid tens of thousands a month in Social Security benefits. After all, retirement checks replace about 40% of income, and if you earned $1 million a year (or $83,333 a month), you’d get a monthly benefit of about $33,333 if there were no cap. The government does not want to pay so much money.

The salary base limit is adjusted annually based on salary increases. In 2024, it’s $168,600. Here’s what it was for the last few years:

• 2023: $160,200
• 2022: $147,000
• 2021: $142,800
• 2020: $137,700

If your earnings equal or exceed this amount, you have earned the maximum countable income and may be on track for the highest possible Social Security check.

Remember, however, that the Social Security Administration considers 35 years of earnings. So you need to earn the inflation-adjusted equivalent of these amounts for at least 35 years of your working life to get the maximum check.

You also have to wait to claim your benefits

Earning a high salary is just the beginning. This puts you on track to maximize your standard profit. If you want the highest monthly Social Security income of all, you should also take your standard benefit and increase it by waiting to claim it until after your full retirement age (FRA).

FRA is based on year of birth and can be as high as 67 for anyone born in 1960 or later. Each month you delay your claim for benefits beyond the FRA will increase your standard Social Security check by 2/3 of 1% per month.

You can earn delayed retirement credits up to 70, so waiting to claim your check until then will allow you to take your primary insurance amount and maximize it. If you had the standard maximum benefit based on your salary and waited until 70 to claim your first Social Security payment, you could get $4,873 a month in 2024.

If you fall short on earnings or claim even a month early, the higher benefit will be off the table. Of course, increasing your income and delaying your claim can still pay off in terms of making your Social Security checks bigger, but you won’t see a $4,873 monthly payment as a retiree.