Here's the Max Social Security Benefit at Age 62 -- and How to Get It

Source The Motley Fool

Key Points

  • Social Security benefits become available at 62.

  • The maximum benefit at 62 is lower than at other ages.

  • To receive it, you need to earn a substantial income over your career.

  • The $23,760 Social Security bonus most retirees completely overlook ›

You can claim Social Security benefits starting at age 62, and your benefit will be based on your average wages during your 35 highest-earning years. However, 62 is considered an early claim, so your benefit will be reduced because you claimed it early.

Because benefits are based on how much you earn, the amount retirees collect can vary widely. However, the maximum benefit at 62 is $2,969. This is substantially below the maximum benefit at full retirement age, which is $4,152, or the maximum benefit of $5,181 that you can collect at age 70.

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If you want to maximize your monthly income and earn the full $2,969 available at 62, here's what you need to do.

Adult looking at financial paperwork.

Image source: Getty Images.

This is exactly how to earn the maximum Social Security benefit at 62

In order to collect the maximum monthly benefit of $2,969 at 62, there are two key things that you must do:

  • Work for at least 35 years.
  • Earn the maximum income subject to Social Security tax for at least 35 years.

In 2026, the maximum income that is subject to Social Security tax is $184,500. This is called the wage base limit, and it changes over time to account for wage growth.

You pay Social Security tax on income up to this threshold, and income up to this amount is counted in your benefits formula. Income above it is not, as there is a cap on wages included in Social Security. This cap exists so the government doesn't have to write huge checks to very high earners, as benefits are directly tied to earnings.

You must earn the inflation-adjusted equivalent of $184,500 for 35 years, since the Social Security benefits formula gives you monthly payments equal to a percentage of wages in your 35 highest-earning years. If you max out your countable wages, you will earn the maximum possible amount for the age you're claiming.

If you work for less than 35 years, some years of $0 wages will be factored in, so it will be impossible to earn the max benefit. And unless your income is equal to or above the wage base limit for every year you work, you'll likely need to work for longer than 35 years to have enough high-earning years included in your formula.

Why is the maximum so much lower at 62 than at FRA or 70?

Maxing out your Social Security benefit can be a good thing because it provides you with more income to live on. But if you claim at 62, you're going to leave a lot of money on the table.

The max benefit at this age is much lower than at full retirement age because early filing penalties apply when you claim benefits before you reach FRA (which is 67 if you were born in 1960 or later). And the disparity is even higher when comparing it to the maximum benefit at 70, because claiming at 70 entitles you to delayed retirement credits.

When doing your retirement planning, it's worth considering the major financial benefits of a delayed claim as you decide what age to start your Social Security. Especially if maxing out your Social Security income is a financial goal.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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