Some Retirees Get $62,172 a Year in Social Security. Here’s How

If there’s one thing you’ll hear a lot about Social Security, it’s that it’s very difficult to retire on those benefits alone.

The typical monthly benefit today is only worth about $2,083, which amounts to roughly $25,000 a year. Even if you have relatively low expenses, a $25,000 income may not cover all of your needs.

But what if you could snag $62,171 a year from Social Security? That paints a very different picture.

The reality is that some seniors are entitled to more than $62,000 in Social Security this year. But it’s only a select few, and for good reason.

Why most Social Security recipients don’t get $62,171 a year

To qualify for Social Security’s maximum monthly benefit of $5,181, which amounts to $62,171 per year, you need to work for at least 35 years, file for benefits at age 70, and earn the equivalent of Social Security’s wage cap or more for 35 years or more.

Now you may be able to push yourself through a 35-year career. And you may be willing to work longer so you’re able to delay your Social Security claim to age 70.

But you can’t necessarily control your paycheck. You can try to build skills that allow it to grow. But if you’re in an industry where the typical wage is $81,000 a year, you’re probably not going to earn the equivalent of Social Security’s wage cap, which is $184,500 a year at present and likely to rise with inflation.

And even if you check off two out of three boxes, you won’t get $62,171 a year if you don’t have 35 years of very high wages on your earnings history. There’s no getting around that.

How to maximize your own Social Security benefit

Social Security’s maximum benefit is out of reach for most seniors. It’s important to recognize that if your monthly benefit is much lower, you’re not an anomaly. At the same time, there are steps you can take to get more money out of Social Security each month.

In addition to claiming benefits at age 70, you can review your earnings record by creating an SSA.gov account. If you spot underreported wages or other errors that work against you, correcting them could lead to larger monthly retirement checks.

You can also extend your career by a few years if you end up with a much higher salary later in life than earlier. For example, let’s say your average yearly wage in your 20s and 30s is $40,000, but you’re now in your 60s earning $140,000 a year.

That’s still not enough to qualify for Social Security’s maximum monthly benefit. However, if you’re able to replace a couple of years where you made $40,000 annually with a $140,000 salary, the monthly benefit you’re eligible for should increase.

Finally, remember that it’s not just salaried wages that count toward calculating your Social Security benefit in retirement. If you do gig work on top of your main job and report that income, it should count, too.

So if you’re bringing home a $90,000 salary but you earn $10,000 a year through your side hustle, you should have $100,000 in wages factored into your benefits formula for the year.

Most people don’t come close to qualifying for $62,172 a year in Social Security. It’s important to be realistic about the monthly benefit you’re entitled to and know that even if it’s much lower, boosting it could still go a long way.

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