Key Points
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Social Security calculates your monthly benefits using the 35 years when your earnings were the highest.
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You need to earn above the wage base limit for 35 years to be eligible for the maximum benefit.
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Monthly benefits are reduced or increased if you claim before or after your full retirement age, respectively.
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Social Security recently had one of its most anticipated days of the year: the announcement of the annual cost-of-living adjustment (COLA). With millions relying heavily on Social Security for their retirement income, the annual COLA announcement is a time to see how much their monthly benefits are expected to increase in the upcoming year.
The 2.8% increase for 2026 will apply to every Social Security recipient, but those receiving the maximum benefit will see a larger dollar increase. If you’re currently receiving the maximum benefit, or will be claiming and hope to receive it, let’s take a look at how much you can expect in 2026.
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How Social Security calculates your monthly benefit
The SSA calculates your monthly benefits using the 35 years when your earnings were the highest. Below is a simplified step-by-step of how it works:
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It takes your earnings from each of the 35 years and indexes them to today’s dollars. If you have fewer than 35 years, the missing years are set to zero.
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The 35 years above are averaged, then divided by 12 to get your average indexed monthly earnings (AIME).
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The SSA applies bend points to your AIME to determine your primary insurance amount, which is the base benefit you receive by claiming at your full retirement age.
The above rundown spares you a lot of the meticulous details, but that’s a broad overview of how it works. In simpler terms: The more you earn, the more you pay in Social Security payroll taxes (up to a certain amount), and the higher your monthly benefits are in retirement.
Achieving the maximum Social Security benefit
The Social Security wage base limit is the maximum amount of your income that’s subject to the Social Security payroll tax each year. In 2026, the wage base limit is $184,500. So, if you earn $200,000 in 2026, for example, $15,500 of it would be free from Social Security payroll taxes.
Like the COLA and other Social Security aspects, the wage base limit is increased in most years (it’s based on changes in the national average wage index). To be eligible for the maximum benefit at a given age, you must have earned at least the wage base limit in the 35 years that the SSA will use to calculate your benefit.
Below are the past 10 wage base limits:
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2025: $176,100
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2024: $168,600
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2023: $160,200
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2022: $147,000
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2021: $142,800
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2020: $137,700
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2019: $132,900
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2018: $128,400
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2017: $127,200
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2016: $118,500
If any of these 10 years will be used in your calculations (which they likely would be), you would have needed to earn at least that much to be eligible for the maximum benefit. Earning anything less than the wage base limit in those 35 years would automatically disqualify you from receiving the maximum benefit.
The maximum Social Security benefits in 2026
Assuming you’ve met the earnings requirements, below are the maximum benefits you can receive in 2026:
|
Age |
Maximum Benefit in 2026 |
|---|---|
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62 |
$2,969 |
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67 |
$4,207 |
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70 |
$5,251 |
Data source: Social Security Administration.
These ages are particularly significant in Social Security because of their implications for when you claim. Age 62 is the earliest you can claim Social Security, but doing so will reduce your monthly benefit by 30%. Age 67 is the full retirement age for anyone born in 1960 or later (which is most new claimers).
Age 70 is the latest you can delay benefits and still receive delayed retirement credits. Delaying benefits past your full retirement age increases them by 2/3 of 1% annually, so someone whose full retirement age is 67 could expect around a 24% benefits increase by claiming at 70.
In reality, most Social Security recipients won’t be eligible to receive the maximum benefit, but if you’re someone who will, knowing how much you can expect can help you plan your finances heading into 2026.
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