Many retirees look to Social Security as a vital source of income, but the amount you receive can vary significantly based on your work history and other factors. With the 2025 cost-of-living adjustment (COLA) set to push the largest Social Security payment above $4,873, it’s essential to know how you can qualify for such a high monthly check.
However, it’s important to remember that Social Security is only intended to supplement your income in retirement, and having additional sources of retirement savings is crucial. Here’s what you need to know about maximizing your Social Security benefits in 2025.
COLA
Each year, Social Security payments receive a boost through the cost-of-living adjustment (COLA). The purpose of COLA is to help Social Security keep up with inflation, preserving the purchasing power of your benefits. While COLA increases payments, it’s not always enough to fully counteract rising costs in areas like healthcare, housing, and food. This means that although COLA can provide helpful boosts, relying on Social Security alone may not be enough to cover all your expenses in retirement.
For 2025, the COLA adjustment will likely push the maximum Social Security payment above $4,873, but not everyone will qualify for this amount. To reach this payment, you must meet several specific requirements.
Maximum Benefit
The first key to receiving the maximum Social Security benefit is earning the “taxable maximum” amount over 35 years. In 2024, the taxable maximum is $168,600, meaning any income earned beyond this threshold is not taxed for Social Security purposes. To qualify for the largest possible payment in 2025, you need to have earned at least this much annually for 35 years.
Keep in mind that this amount will likely increase in 2025 due to inflation. Most workers cannot achieve this high earning threshold consistently, making it difficult to qualify for the maximum Social Security payment.
Work History
Your Social Security benefit is calculated based on your highest 35 years of earnings. If you’ve worked fewer than 35 years, zeros will be factored into your benefit calculation, lowering your monthly payment. Therefore, to maximize your benefits, you need to have a full 35 years of employment with earnings covered by Social Security.
This means if you worked in jobs that did not contribute to Social Security, such as certain government roles or international positions, those years won’t count toward your benefit calculation. It’s critical to ensure you have enough qualifying work years to avoid a reduced payout.
Delay Benefits
Another key factor in maximizing your Social Security check is delaying your benefits until you turn 70 years old. Although you can begin receiving Social Security as early as age 62, doing so will permanently reduce your monthly payment. On the other hand, delaying until age 70 allows you to accrue “delayed retirement credits,” which increase your benefit by about 8% per year after your full retirement age (typically between 66 and 67, depending on your birth year).
By delaying benefits until 70, you can boost your monthly check by approximately 24%, making a substantial difference in your retirement income.
Employment
To qualify for Social Security, your work must be in jobs covered by the Social Security program. Most U.S. jobs fall under this umbrella, but some professions, particularly certain government jobs, may not. It’s essential to check whether all your years of employment count toward Social Security eligibility, as not all income is subject to Social Security taxes.
Income Sources
Even if you meet all the criteria to receive the maximum Social Security benefit, it’s important to have additional sources of retirement income. The largest Social Security payment, even with COLA, may still not cover all of your expenses in retirement.
Many retirees supplement their Social Security with savings from 401(k) plans, IRAs, or other investments. Diversifying your income streams can help protect you from the rising costs of living that COLA adjustments may not fully account for.
Earning the largest Social Security payment in 2025, estimated to exceed $4,873 after COLA, requires meeting specific criteria: earning the taxable maximum for 35 years, working in covered employment, and delaying benefits until age 70. These factors, along with strategic planning, can significantly increase your retirement income.
However, Social Security should be part of a broader retirement plan that includes personal savings and investments. By knowing how to maximize your benefits, you can enjoy a more secure and financially comfortable retirement.
FAQs
How can I get the highest Social Security check in 2025?
You need to earn the taxable maximum for 35 years and delay benefits until age 70.
What is the taxable maximum for Social Security in 2024?
The taxable maximum is set at $168,600 for 2024, and it will likely increase in 2025.
Does delaying Social Security increase my benefits?
Yes, delaying benefits until age 70 can boost your payment by about 24%.
Can I qualify for maximum benefits if I worked less than 35 years?
No, you need a full 35 years of covered work to avoid a reduced benefit.
Will COLA increase my Social Security check?
Yes, the COLA adjustment will raise your payment to help with inflation.