Do you want the maximum Social Security benefit of $5,108? Here is the salary you need.

The average Social Security retirement benefit was $1,921.56 in September. While this may be a nice addition to your retirement savings, for most retirees it is barely enough to live on. This is especially true when you consider the rapidly rising costs of healthcare and housing.

But if you earn enough during your career, you could get a lot more from Social Security in retirement. The maximum possible benefit in 2025 will be $5,108 per month, and that amount will increase every year thanks to the annual cost of living adjustment (COLA) built into Social Security.

The biggest hurdle to getting this maximum benefit is earning a high enough salary over the course of your career. Only a tiny percentage of Americans will ever be eligible for the maximum benefit. But if you want to become one of them, here’s how much you need to earn.

Image source: Getty Images.

The three factors that determine the size of your Social Security check

Before we figure out how much you need to earn to maximize your Social Security benefits, it’s important to understand how the government calculates your retirement check. Three factors play a role in the calculation:

• Your earning history
• When you were born
• If you claim benefits

Once you claim Social Security benefits, the government will review your previous wages. It’s not just about what you earned in your last year of employment; It runs through your entire career. Every year from the year in which you turn 60, your earnings are adjusted to wage inflation, which is linked to an index. All earnings after age 60 are not adjusted.

The Social Security Administration determines your average monthly income based on your 35 years of highest adjusted income. Then, this average is plugged into the Social Security benefit formula (which depends on your date of birth) to determine your primary insurance amount (PIA). This is the amount you will receive if you claim benefits the month you reach full retirement age.

Your full retirement age depends on the year you were born. People born between 1943 and 1954 reached full retirement age at 66. Your full retirement age increases by two months for each year you were born after 1954, until it reaches age 67 for people born in 1960 or later.

If you claim benefits before reaching full retirement age, your benefits will be reduced compared to your PIA. However, if you wait past your full retirement age, you will receive more from Social Security for each month you delay until age 70. Someone born in 1955 has a full retirement age of 66 and two months and can receive almost 31% on top of their PIA by waiting until age 70 to claim.

Here’s the salary you need to get the maximum benefit

Most people pay Social Security taxes on their entire paycheck throughout their career. But high earners may not pay the tax on every penny they earn. That’s because the Social Security Administration sets a cap on taxable wages each year.

Amounts above this limit will not incur taxes, but will not be counted toward your earnings history. This sets the bar for the salary you need to earn in order to receive the largest possible pension in retirement. If you can consistently earn above this threshold for at least 35 years, you can expect a very large Social Security check.

The table below shows the maximum taxable income for each of the last 50 years.

Data source: Social Security Administration.

It is important to note that earnings limits are likely to continue to rise over time due to inflation and improvements in living standards. If your salary does not continue to increase in line with the taxable earnings limit, you will no longer be entitled to the maximum possible benefit in the future.

You can’t just earn a high salary and expect to get the most benefits possible

However, a high salary is only part of the equation. The time of your birth and your claim also play crucial factors.

First, the maximum possible benefit is only available to pensioners who turn 70 in 2025. This is due to the minor changes in the benefit formula that affect the year you were born.

Additionally, these retirees must wait until they turn 70 in 2025 before they can claim benefits in order to receive the maximum amount.

Perhaps the biggest factor disqualifying retirees from receiving the maximum pension is that they were required to work until 2024 and earned more than the maximum taxable income in most years since 1986. Because of the way the Social Security Administration does its calculations, earnings in your 60s (and beyond) have a much larger impact on your final benefit amount for those earning above the maximum taxable income.

Given all of these requirements, only a small handful of Social Security recipients receive $5,108 checks in the mail each month. And most likely, the prospect of maximum benefit means someone has had a long and successful career that extends into their 60s. Someone in this situation likely has their own retirement savings or has no plans to retire at all.

For everyone else, it’s worth aiming for a salary high enough to maximize your potential Social Security benefits when you decide to retire. But if you’re saving and investing for your golden years on the side, you may not want to continue working well into your 60s. Waiting until age 70 to claim benefits may still be a good idea, but ideally you can enjoy early retirement without worrying about getting every possible penny from Social Security.