Thousands of Social Security beneficiaries in the United States are set to be receiving their monthly payments this week, but a small group could see record deposits of up to $5,108, the maximum amount authorized by the system by 2025. This rare VIP category, reserved for those who met strict requirements for decades, reflects not only years of contributions with income at the taxable cap, but also a late retirement strategy.
And let me explain what I mean by that: Late retirement means you decide to delay claiming benefits until age 70 so you can claim the maximum Social Security for the rest of your life. However, this scenario is far from the norm: only 6% of Social Security beneficiaries receive more than $4,000 per month, with the average benefit hovering around $1,900 per month.
Other tactics that help reach the maximum Social Security payment
The inflation adjustment (COLA) explains part of the increase in the amounts, which this year reached the aforementioned $5,108, after an increase of 2.5% for the entire year. However, reaching this figure requires more than patience: it implies having maintained high salaries for at least 35 years, a privilege that is mainly accessed by professionals in sectors such as medicine, law, or technology.
That all seems a little confusing, so let’s make it a little easier with a bulleted list:
a) Maximum earnings subject to Social Security taxes for 35 years
- you must win at least the maximum annual taxable limit (the amount of income subject to Social Security taxes) during 35 years of your career.
- Example: In 2024, the limit is $168,600; This amount is adjusted annually for inflation.
- If you work more than 35 years, your lowest-earning years will be eliminated, so it’s best to get past 35 high-earning years.
b) Delay retirement until age 70
- The maximum amount It is only reached if you delay applying for benefits until age 70.
- For each year you delay past your “full retirement age” (67 for those born in 1960 or later), you will receive a 8% annual increase.
- If you retire earlier (e.g. at age 62), the benefit would be drastically reduced (up to 30% less).
c) 35 years of recorded work
- If you work less than 35 years, “$0” years will be included in the calculation, reducing the average benefit.
Last payment date of March 2025 is ready this week
As you know, Social Security benefits for retirees are sent over 3 weeks, every month: a first group of beneficiaries (with birthdays between the 1st and 10th of any month) receive their payments on the second Wednesday; A second group (with birthdays from the 11th to the 20th of any month) receive their payments on the third Wednesday of the month.
Then, a fourth group of retirees is the one who remains to receive their payments: they are those who have birthdays after the 21st of any month, whose payment is scheduled for this week, Wednesday, March 26. With that, the Social Security cycle is finalized, which will begin again on April 1 with Supplemental Security Income (SSI) payments.