3 Key Factors That Determine Your Social Security Income
Comparing the average and maximum Social Security benefit and counting down the 3 factors you can use to grow your monthly income.
If you’ve ever wondered how your Social Security benefit stacks up against the average or maximum possible amounts, this video is for you. I’m counting down the 3 most influential factors when it comes to your Social Security benefit so you can learn how to grow your monthly income.
Factor #3: Lifetime Earnings
The third most important factor in determining your Social Security benefit is your total earnings over your lifetime. Social Security calculates your benefit by averaging your highest 35 years of earnings, adjusted for inflation.
This means that even if you earned a modest salary decades ago, those amounts are indexed to reflect today’s value. The $40,000 you earned in 1990 might be worth $125,000 today.
If you’re thinking you don’t have much control over this factor now, think again. Taking on a part-time job or freelance work can add to your lifetime earnings and potentially improve your Social Security benefit.
One key detail to remember is the importance of earning enough to secure Social Security credits. In 2025, for example, earning $1,810 qualifies you for one credit, and earning $7,240 secures the maximum four credits for the year. You need a total of 40 credits—usually about ten years of work—to qualify for benefits.
Factor #2: Duration of Earnings
The second factor is how many years you’ve worked and paid into Social Security. The government looks at your top 35 years of earnings. If you don’t have 35 years, zeros will be factored into your average, which can significantly lower your benefit.
Imagine you’ve worked only 20 years. If you work just one more year, you could see a 5% increase in your benefit. Another year after that could add another 5%.
This is especially relevant for stay-at-home parents or individuals with sporadic work histories. Even a few additional years of earnings can have a noticeable impact on your monthly check.
On the flip side, if you already have 35 years of strong earnings, continuing to work may not significantly boost your benefit. In that case, it might be time to consider other retirement planning strategies.
Factor #1: Timing of Your Filing
This is the number one factor—and the one you have the most control over—when it comes to boosting your Social Security benefits.
By waiting to file until age 70, you can get 77% more than if you filed at age 62.
Here’s how the math works: Filing early at 62 can reduce your benefit by about 30% compared to your full retirement age, typically 67. On the other hand, delaying until 70 can increase your benefit by 24% above your full retirement age amount.
In 2025, the average Social Security benefit is $1,976 per month, but the maximum benefit varies dramatically:
- At age 62, the maximum is $2,831 per month.
- At full retirement age (67), it jumps to $4,018 per month.
- At age 70, the maximum reaches $5,108 per month.
That’s nearly double the benefit just by waiting eight years.
Key Takeaways for Maximizing Your Benefit
- Review Your Earnings Record: Make sure your reported earnings are accurate and complete.
- Work More Years (If Possible): Filling in gaps can improve your average and increase your benefit.
- Strategically Plan Your Filing Age: The longer you wait (up to age 70), the higher your benefit will be.
Understanding these factors can help you make informed decisions and get closer to that coveted maximum benefit. Take a look at your own Social Security statement, see how you compare to the averages, and decide what steps you can take to boost your monthly check.
Links:
- Social Security and Work: How Much Can You Make in 2025?
- Supercharge your Social Security Benefit with These 5 Tips
- Social Security: How to Know When to Start Taking It
- How to KEEP MORE of Your $5M Retirement Savings in 2025
Connect With Jeremy Keil:
- Mr. Retirement YouTube Channel
- LinkedIn: Jeremy Keil
- Facebook: Jeremy Keil
- LinkedIn: Keil Financial Partners
Disclosures
This material is provided for informational purposes only and is not solely intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The views and strategies described may not be suitable for all investors. They also do not include all fees or expenses that may be incurred by investing in specific products. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. You cannot invest directly in an index. The opinions expressed are subject to change as subsequent conditions vary. Advisory services offered through Thrivent Advisor Network, LLC.
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