Thousands of Social Security beneficiaries in the United States are expected to receive their monthly payments this week, but a small group may see record deposits of up to $5,108, the maximum amount authorized by the system by 2025.
This uncommon VIP category, reserved for those who have met stringent requirements for decades, reflects not only years of contributions with income at the taxable limit, but also a late retirement strategy.
Let me explain what I mean by that. Late retirement means delaying claiming benefits until you reach the age of 70, allowing you to receive the maximum Social Security benefit for the rest of your life. However, this is far from the norm: only 6% of Social Security recipients receive more than $4,000 per month, with the average benefit hovering around $1,900.
Other tactics that help reach the maximum Social Security payment
The inflation adjustment (COLA) explains a portion of the increase in amounts, which this year reached the aforementioned $5,108, following a 2.5% increase for the year.
However, achieving this figure necessitates more than just patience: it implies maintaining high salaries for at least 35 years, a privilege reserved primarily for professionals in fields such as medicine, law, and technology.
That all sounds a little confusing, so let’s make it 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 are aware, Social Security benefits for retirees are distributed over three weeks each 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) receives their payments on the third Wednesday of the month.
Then there’s a fourth group of retirees who haven’t received their payments yet: those born after the 21st of any month, and whose payment is scheduled for this week, Wednesday, March 26. The Social Security cycle is now complete, and payments for Supplemental Security Income (SSI) will resume on April 1.
