$4,873 Social Security Retirement Payments Before Year-End – Who’s Eligible?

$4,873 Social Security Retirement Payments Before Year-End – Social Security serves as a cornerstone of financial stability for millions of retirees across the United States. However, many people are unaware that strategic planning can maximize monthly payments to as much as $4,873 —a figure that can significantly enhance retirement security.

Whether you’re years away from retirement or about to claim your benefits, this guide will provide actionable steps to help you optimize your Social Security payments and achieve the highest possible income.

Key Details About Social Security Retirement Payments

Also Read: Get Up to $8,046 in Tax Credits in 2025 – Eligibility Criteria & How to Claim!

Understanding Social Security Retirement Benefits

Social Security is a federal program funded by payroll taxes collected under the Federal Insurance Contributions Act (FICA) . These taxes support monthly payments to retired workers, their spouses, disabled individuals, and survivors of deceased workers.

Your monthly retirement benefit is determined by three primary factors:

1. Lifetime Earnings: Higher earnings generally result in higher benefits.
2. Age at Claiming: The age when you begin claiming benefits impacts the amount you receive.
3. Work History: Specifically, the 35 years with the highest earnings are used to calculate your benefit.

How Social Security Benefits Are Calculated

The Social Security Administration (SSA) uses a three-step formula to determine your benefits:

1. Indexing Earnings

Your past earnings are adjusted for inflation to reflect their current value.

2. Average Indexed Monthly Earnings (AIME)

The SSA calculates the average of your 35 highest-earning years. If you have fewer than 35 years of earnings, the missing years are counted as $0, which lowers your average.

3. Primary Insurance Amount (PIA)

A progressive formula is applied to your AIME to determine your monthly benefit. For 2024, the taxable maximum income is $168,600 . To achieve the maximum benefit of $4,873 , you must consistently earn at or above this limit during your highest-earning years.

How to Qualify for the Maximum Payment ($4,873)

To earn the maximum Social Security retirement payment, you need to meet specific criteria. Here’s what you need to know:

1. Work for At Least 35 Years

Social Security calculates benefits based on your 35 highest-earning years. If you work fewer than 35 years, the missing years are counted as $0, reducing your average earnings.

Actionable Tip: If you have fewer than 35 years of earnings, consider staying in the workforce longer to replace $0 years with income.

2. Consistently Earn at the Taxable Maximum

To qualify for the maximum benefit, you need to earn at or above the annual taxable maximum for 35 years. For 2024, this is $168,600 .

Example: If you consistently earn the taxable maximum, your AIME will be higher, leading to a larger monthly benefit.

3. Delay Claiming Benefits Until Age 70

While you can start claiming benefits at age 62, doing so results in a permanent reduction of up to 30% . Conversely, delaying benefits past your Full Retirement Age (FRA) —which is 67 for most individuals—adds 8% per year to your monthly benefit until age 70.

Pro Tip: If you have sufficient savings, delaying benefits can significantly increase your lifetime payout.

4. Take Advantage of Spousal and Survivor Benefits

If you’re married, you may qualify for spousal benefits, which can be up to 50% of your spouse’s Primary Insurance Amount (PIA). Surviving spouses may also receive up to 100% of the deceased worker’s benefit.

Example: If your spouse qualifies for the maximum $4,873 , you could receive up to $2,436.50 as a spousal benefit.

5. Understand Payment Schedules

Social Security payments are issued according to your birth date:

• Born 1st–10th: Payment on December 11, 2024 .
• Born 11th–20th: Payment on December 18, 2024 .
• Born 21st–31st: Payment on December 24, 2024 .

Note: Supplemental Security Income (SSI) payments follow a different schedule and will be issued on November 29, 2024 , due to the first of December falling on a weekend.

Also Read: Will You Get the $700+ Stimulus Payment in December 2024? Check Eligibility Here!

Additional Strategies to Maximize Benefits

1. Avoid Claiming Early if Possible

Claiming benefits at age 62 locks in reduced payments. While it may be tempting to start early, waiting until your FRA—or later—can significantly increase your monthly benefit.

2. Coordinate with Medicare Enrollment

Enroll in Medicare at age 65 to avoid late enrollment penalties, even if you’re delaying Social Security.

3. Track Your Earnings Record

Ensure that your earnings are reported correctly to the SSA. Errors in your record can lower your benefits.

• Use the my Social Security portal (SSA.gov ) to review your earnings history.

4. Keep Working if Possible

If your highest-earning years occur later in life, staying in the workforce can boost your AIME, particularly if you’re replacing lower-earning years in your record.

Chart: How Claiming Age Affects Monthly Benefits

Also Read: February 2025 CalWORKs Payment – Eligibility, Dates, and How to Claim!

Conclusion

Maximizing your Social Security retirement payments requires careful planning and strategic decisions. By working a full 35 years, earning at the taxable maximum, and delaying benefits until age 70, you can achieve the highest monthly payment of $4,873 . Additionally, understanding spousal and survivor benefits, tracking your earnings record, and coordinating with Medicare enrollment can further enhance your retirement income.

For more information, visit the official Social Security Administration website at SSA.gov .