Maximum Social Security Monthly Benefit

As of January 2016, the maximum Social Security monthly benefit one can collect is $2,639 (this excludes those with disabled children who can also collect for family members).

How Do you collect the Maximum Social Security Monthly Benefit?

Social Security uses your highest 35 years of indexed earnings. Indexed earnings (we are simplifying here) are your inflation adjusted earnings. For example, your indexed earnings for 2005 are your actual earnings multiplied by 1.1017 (i.e. increased by 10.17%). So if you earned 10,000 in 2005, Social Security indexes this to $11,170 in order to calculate your benefit.

Tip: if you are working now and you earnings exceed $118,500 annually, you are likely helping yourself by continuing to work. Unless your indexed earnings were higher in the past (use the table below as a rough guide), you are probably adding to your 35 highest earning years.

By indexing earnings in this manner, Social Security is removing the problem of wages being much lower in the past and basing your benefit on those low earnings. This process helps you get closer to the maximum Social Security monthly benefit.

While close, but not exact, you would have needed to earn the amounts below, or more, in order to collect the current maximum Social Security monthly benefit of $2,639 per month.

Year	Amount		Year	Amount
1972	9,000		1995	61,200
1973	10,800		1996	62,700
1974	13,200		1997	65,400
1975	14,100		1998	68,400
1976	15,300		1999	72,600
1977	16,500		2000	76,200
1978	17,700		2001	80,400
1979	22,900		2002	84,900
1980	25,900		2003	87,000
1981	29,700		2004	87,900
1982	32,400		2005	90,000
1983	35,700		2006	$94,200
1984	37,800		2007	97,500
1985	39,600		2008	102,000
1986	$42,000		2009	106,800
1987	43,800		2010	106,800
1988	45,000		2011	106,800
1989	48,000		2012	110,100
1990	51,300		2013	113,700
1991	53,400		2014	117,000
1992	55,500		2015	118,500
1993	57,600		2016	118,500
1994	60,600

The following issues will reduce your maximum Social Security monthly benefit.

1. If you start collecting before your full retirement age (age 66 if you are retiring now), you will receive less than the maximum. For example, if you start your benefits at age 62, you will get 25% less.
2. If you start collecting benefits and still have earned income from working, for every $2 you earn above $1310 per month, you will give up $1 of Social Security income.  Once you reach the year in which you turn age 66, for every $3 you earn above $3490 per month, you give up $1 in Social Security.

Once you turn age 66, you can earn as much as you desire without any deductions from your Social Security benefit and may receive maximum Social Security monthly benefit if your earnings history supports it.

Tip: It’s not just ow much you collect form Social Security, it’s how much you keep.  Be sure to see our article on how to avoid taxes on your Social Security income.