The Social Security Administration will presumably increase monthly benefits in 2025. Therefore, the maximum benefit for retirees will also get a boost. As of January 2024, the largest retirement benefit is worth $4,873.
Since retirees receive 12 monthly payments per year, the maximum a senior on Social Security can get is $58,476 in 2024. Thus, it will be a higher payment in 2025 once SSA COLA comes into effect.
Social Security requirements to get over $58,476 in 2025
To get over $58,476 in 2025, a worker must meet 4 key requirements. On its own, each requirement can help you increase your monthly payments from Social Security. However, if you do not meet all of them, you will not qualify.
- apply for Social Security retirement benefits at the age of 70, not before
- make sure you work and pay taxes to Social Security, some jobs are not covered by SSA
- keep working for a minimum of 35 years, often, you may need more than that
- earn the contribution and benefit base for 35 years at least
Those who do not know what the contribution and benefit base is, they may have heard of the taxable maximum. It is the moment you stop paying taxes regardless of the earnings you have because you have reached the limit per year.
Reward from Social Security
Social Security rewards those workers who delay retirement until they are 70. That is the best way to earn 24% extra as a retiree in your monthly payment. Early filing at 62 would leave you with a much lower payment of up to $2,710.
Filing at Full Retirement Age is not a bad idea if you would like to get 100% of your benefits and you do not feel like delaying retirement. Sometimes you are not well and health issues can prevent you from late retirement.
Even if you cannot find a job or set up a business to earn the taxable maximum, you could get a job with a higher wage. As of 2024, the taxable maximum is $168,600, up from $160,200 in 2023. The thing is it will continue growing after COLA.