Why Your Social Security Payment Could Be $2,831 at 62 but $5,108 at 70

Social Security remains one of America’s most crucial retirement safety nets. Currently, more than 52 million retired workers depend on these benefits, often treating them as a cornerstone of their retirement income strategy. But here’s what many don’t realize: the maximum amount of Social Security you receive can differ dramatically based on when you decide to start collecting—a gap that can mean thousands of dollars annually.

Understanding the Three Claiming Milestones

The Social Security claiming window spans from age 62 to 70. These three ages carry particular significance:

• Age 62: The earliest possible claiming age
• Age 67: The full retirement age for most people born in 1960 or later
• Age 70: The deadline for delaying benefits to receive the highest payment

The maximum monthly benefits at these milestones tell a compelling story:

That’s an increase of $2,277 per month—or over $27,000 annually—between claiming at 62 versus waiting until 70.

How Social Security Calculates Your Maximum Benefit

To qualify for the maximum amount of Social Security at any age, you must have earned at least the wage base limit for all 35 years used in the benefits calculation. The Administration bases monthly benefits on your highest-earning 35 years, adjusting them for inflation to reflect today’s dollar values.

The wage base limit represents the maximum income subject to Social Security taxes. In 2025, this threshold sits at $176,100. This is significantly higher than the median U.S. salary of approximately $62,000—a gap that explains why so few people ever reach the maximum benefit tier.

The computation involves indexing your earnings, calculating your average indexed monthly earnings (AIME), then applying fixed bend points to determine your primary insurance amount. Only earnings up to the wage base limit factor into this formula.

Why the Age Differences Matter: Reductions and Credits

The dramatic differences between the maximum amount of Social Security available at different ages stem from two mechanisms:

Early Claiming Penalties: If you apply for benefits before reaching full retirement age, you face a permanent reduction. For each month claimed before your full retirement age, benefits decrease by 5/9 of 1%, up to 36 months. Additional early months further reduce payments by 5/12 of 1%. For someone with a 67 full retirement age, claiming at 62 results in a 30% cut to lifetime benefits.

Delayed Retirement Credits: Conversely, postponing benefits past your full retirement age increases them by 2/3 of 1% monthly, equivalent to 8% annually, continuing until age 70. This incentive structure means waiting eight years from 62 to 70 nearly doubles your monthly payment.

The Reality: Few Actually Achieve Maximum Benefits

Only about 6% of workers earn beyond the wage base limit annually. Given that the median salary is roughly $62,000—less than 35% of the $176,100 threshold—the vast majority will fall short of maximum benefit eligibility. Even earning one dollar below the wage base limit in a single year of the 35-year calculation window disqualifies you from the maximum.

This reality underscores why financial advisors consistently stress the importance of supplementing Social Security with other income sources: retirement accounts, investments, and alternative savings vehicles. While Social Security provides essential support, relying on it as your sole retirement income rarely proves sufficient for most Americans.

The decision of when to claim ultimately depends on individual circumstances—life expectancy, current financial needs, and overall retirement strategy. Understanding these maximum amounts and the mechanics behind them empowers you to make informed choices about your retirement income.