Retirement Social Security

The Social Security Rule That Matters Most Once You're Within 5 Years of Retirement

It's crucial to know what goes into your Social Security claim and what you can do to boost those monthly checks.

By Maurie Backman , Edited by Laura Hohenstein

Updated May 12, 2026

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A smart money move for seniors is claiming Social Security at the right time. Although you might have savings and other sources of income to live on once you retire, Social Security guarantees you monthly benefits for life. So the larger those checks are individually, the fewer financial worries you might have.

You may be aware that your Social Security claiming age plays a role in determining what monthly benefit you get. But your wage history also plays a role in determining how much Social Security you get each month, which is why it's important to be mindful of one key factor when you're within five years of retirement.

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Your 35 highest-paid years of earnings matter

Your Social Security benefits are based on two things: your lifetime wage history and your filing age. And within the context of your wage history, the Social Security Administration (SSA) specifically takes your 35 highest-paid years of earnings into account when calculating your monthly benefits.

If you have fewer than 35 years of earnings on record, the SSA will factor a $0 into your benefits formula for each year you don't have wages on file. A single $0 year may not have such a big impact on your monthly checks (though it may still have some impact). But several $0 years could make a big difference in how much you're paid each month during retirement.

Now, let's say you're nearing retirement with only a 32-year work history. If you decide to end your career then, you're looking at three $0 years for Social Security purposes. If you work three more years, you'll have wages instead of those three $0s. That could make a big difference.

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Working more when your earnings have peaked helps tremendously

Many people's careers follow a certain trajectory – you earn less when you're first starting out, your earnings grow as your skills develop and you attain promotions, and your earnings eventually peak at a certain level. If this is the pattern your wages have fallen into, then you should know that the five-year period leading up to when you claim Social Security could be extremely important.

If you're in your early or mid-60s and are at your peak earnings, your wages in the five-year period leading up to retirement could matter a lot. Those earnings could bring up your average wages, leading to larger monthly benefits for you.

It could pay to keep working even if you have a 35-year history

It's true that Social Security will only count your 35 highest-paid years of wages in its benefits formula. But if you're nearing retirement and you see you've already worked 35 years, that doesn't automatically mean you should stop.

If your earnings are at their peak now and you continue to work, you can replace a few years of lower earnings with higher wages. The result? Larger monthly Social Security checks.

For example, let's say you began working at age 25 and are now 60. If you never took a break, it means you may have 35 years of earnings on record already.

But chances are, the paycheck you earned at 25 pales in comparison to what you're earning now. If you continue working, you may be able to replace a few years of entry-level wages with higher wages, resulting in larger monthly Social Security benefits.

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Keeping tabs on your earnings record is also key

A lot of people assume that the SSA has all of the information it needs to calculate their monthly benefits. But it's not a given that the SSA's data is accurate. If the SSA has missing, incomplete, or incorrect information for you on file, that could result in smaller monthly checks.

For example, let's say you changed jobs in 2022 and worked for one employer for half the year. If only your second employer reported your wages, you could be looking at missing wages that result in less Social Security for you.

That's why it's important to check your wage history and make sure the SSA has it right. The easiest way to do so is to create an account on SSA.gov and check your earnings statements.

Those statements should have a summary of your wages so you can see if anything looks off. Your earnings statements should also have an estimate of your monthly Social Security benefits at different filing ages.

Bottom line

A lot of people's retirement plans hinge on getting a decent monthly check from Social Security. And you should understand the role your earnings history has in Social Security's benefits formula.

It's more than possible for two people claiming Social Security at the exact same time to have very different monthly benefits if one has a few years of higher earnings on record while the other doesn't. So if you're nearing retirement and earning a nice salary, it could pay to stick out your job a few more years. Not only might this result in larger Social Security checks for life, but it could also give you a chance to grow your savings for even more retirement income.

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