Here’s the maximum possible Social Security benefit for retirees ages 62 to 85 in 2026

Here’s the maximum possible Social Security benefit for retirees ages 62 to 85 in 2026

by

  • The year you were born has a big impact on how much you can get in Social Security benefits.

  • If you want to maximize the benefits, you need to work at a high-paying job, but there is one important detail that makes it impractical for most.

  • Understanding how continuing to work will affect your benefits can help you decide when to retire.

  • The $23,760 Social Security Bonus Most Retirees Overlook ›

The average Social Security retirement recipient is expected to receive a monthly payment of about $2,064 in 2026, based on the most recent data provided by the Social Security Administration. But some beneficiaries will receive much more.

Those with long, high-paying careers can receive thousands of dollars more each month from the government’s retirement program. But there are several factors that will determine exactly how much. Here’s the theoretical maximum possible Social Security benefit for retirees at each age from 62 to 85 for 2026.

Image source: Getty Images.

Before determining the maximum possible benefit for each age group, it’s important to understand, at least at a basic level, how the government calculates your benefit.

The first step the Social Security Administration takes when calculating your benefit is to determine your Indexed Average Monthly Earnings, or AIME. It takes your entire earnings history and adjusts each year’s taxable wages and self-employment income for wage inflation tied to an index level in the year you turned 60. Any earnings after age 60 do not receive an inflation adjustment. It then selects the 35 years with the highest inflation-adjusted earnings and determines their monthly average. This is your SCIENCE.

The AIME is then plugged into the Social Security benefits formula to determine the initial primary insurance amount, or PIA. The curve points in the formula are also indexed to wage inflation and set the year you become eligible for Social Security (at age 62).

The year you were born plays an important role in determining the fundamental factors behind your Social Security benefit. As a result, the maximum possible benefit will vary depending on the year you were born.

The result of the Social Security benefit formula is your Primary Insurance Amount, or PIA. But the SSA will adjust your PIA each year based on several factors. If you had earnings in a particular year, the SSA will recalculate your AIME, which could affect your PIA. In addition, your PIA receives an annual cost of living adjustment. COLA applies regardless of whether you have already claimed benefits or not.

Leave a Comment