In 2025, after the 2.5% cost of living adjustment (COLA) was applied, Social Security benefits increased for all recipients, including retirees, Supplemental Security Income (SSI) recipients, and those receiving disability benefits (SSDI).
For retirees, the increase added to their monthly deposits is good news since the prices of products and services increased in 2024 and that reduced their purchasing power. I know you’ve heard that the maximum Social Security benefit was set at $5,108, and you’re wondering how to access it in 2025: well, here are the three conditions you must meet if you’re looking to aspire to it.
Three key factors in calculating Social Security payments
The monthly amount that a person receives from Social Security depends on three fundamental elements:
- First, the income history: The Social Security Administration (SSA) analyzes income earned throughout your working career. They are adjusted for inflation until the year the person turns 60. Subsequently, the 35 years with the highest income are selected, whose average is used in the formula to calculate the monthly benefit.
- Second, the year of birth: This factor determines the full retirement age (FRA, for its acronym in English). For those born between 1943 and 1954, the FRA is 66 years, progressively increasing to 67 for those born in 1960 or later.
- Third, the age when applying for benefits: Applying for benefits before reaching FRA results in a permanent monthly reduction. On the other hand, delaying the application until age 70 increases the monthly amount by approximately 8% for each year after FRA.
To reach that juicy monthly check of $5,108, the applicant must meet several strict requirements. First, you must meet or exceed the annual taxable income limit for at least 35 years. In 2025, this limit will be $176,100, according to SSA data. In addition, it is necessary for the person to delay applying for benefits until reaching age 70, after which additional increases no longer apply.
Then there is the taxable income limit, adjusted annually for inflation: this increased in 2024 to $168,600, also reached by the cost of living adjustment approved by the Social Security Administration (SSA).
Who qualifies for the maximum benefit of $5,108 per month
Only a small percentage of workers meet the necessary conditions to achieve the maximum monthly benefit. In 2025, those born in 1955 who turn 70 this year will be the only ones eligible to receive the full $5,108, as long as they meet the other requirements mentioned.
For those born in previous years, benefits are slightly lower due to differences in Social Security formula adjustments. For example, those born in 1954 can receive up to $5,090. Although the difference is minimal, it illustrates how small changes to the formula impact the final amount.
Of all, the most important thing is to maintain a history of high income after age 60: That’s because, although adjustments for inflation stop at age 60, the taxable income limit continues to increase annually. Therefore, income earned between ages 60 and 70 may be the most valuable in terms of contributions to the benefit calculation.
Deciding what is the perfect age to retire depends entirely on your circumstances and possibilities. It is strongly recommended to speak with a financial advisor or retirement expert to get correct advice.
