As a reminder, those born on the 21st through 31st of any month will be receiving their Social Security payments next week, with some receiving checks of up to $5,108. That amount is the maximum and it is associated with many factors, not just age. To collect this amount, it is imperative to time your claim perfectly: you have to contribute until you reach 70, the age with peak retirement credit accumulation.
In addition to 70 being your latest birthday, significant factors include your employment history. The SSA benefits formula relies on capturing the 35 highest earning years. To qualify for a benefit, you need a minimum of 40 quarters of Social Security taxed income, or 10 years of working.* Those whose work history is below this threshold will be penalized across the board and will face reduced payouts irrespective of their filing age.
Why Waiting Is Beneficial
Claimants can begin collecting their benefits as early as age 62, but for every year you delay your application up to 70, your benefits increase by approximately 8%. This means that an individual whose monthly benefit is $3,000 at “full retirement age” could have it increased to almost $1,000 if they wait until 70 to claim benefits. The increase is even more significant for high-income earners. In addition to increasing the guaranteed payout, delaying benefits also provides inflation protection since the base amount indexed for cost-of living adjustments (COLA) applies to a larger starting figure.
Upcoming Construction Of Living Adjustments: Areas Of Interest
Retirement age beneficiaries might not be able to directly ask for a monthly increase after their claim is filed, but the SSA does implement a cost-of-living adjustment every October based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The announcement of this year’s COLA is scheduled for 15 October 2025. While larger COLA adjustments may seem beneficial as it results in higher checks, a modest increase could also indicate more stability for essential goods – a desirable scenario for those on a fixed budget.
How to Maximize Your Social Security Benefit to $5,108
For individuals who are newly eligible or still strategically planning their filing age, one key point to keep in mind is your filing age selection along with your Social Security lifetime earnings record determines if you qualify for the SSA’s maximum payout. With careful planning and a holistic understanding of SSA regulations, there are noticeable amounts of difference in retirement income.
