Understanding the Social Security Family Maximum Benefit (FMB)
The Social Security Family Maximum Benefit (FMB) was established in 1939 when Congress amended the Social Security Act, the same year it introduced auxiliary benefits for the families of retired, deceased, and disabled workers. The FMB is the maximum monthly amount that can be paid out on a worker’s earnings record, which includes benefits for the worker’s spouse, minor children, and dependent family members.
How the Family Maximum Benefit is Calculated
The formula for determining the FMB is similar to the one used for calculating the Primary Insurance Amount (PIA). Essentially, it involves summing up four separate percentages of portions of the worker’s PIA.
The Math Behind the FMB for 2025
For 2025, the family-maximum formula is based on specific “bend points” which are:
- $1,567
- $2,262
- $2,950
These bend points correspond to different portions of the worker’s PIA. The family maximum benefit is calculated as follows:
- 150% of the first $1,567 of the PIA
- 272% of the PIA between $1,567 and $2,262
- 134% of the PIA between $2,262 and $2,950
- 175% of the PIA above $2,950
Thus, for a worker who turns 62 or dies in 2025, the total benefit payable to the family will not exceed the sum of these amounts.
For example, the maximum benefit (E) is 180% of the worker’s PIA.
Retirement Family Maximum Benefit
When a worker reaches full retirement age and begins collecting Social Security, the family may be eligible for additional benefits, such as spousal and dependent child benefits.
For instance, if a worker receives a monthly benefit of $2,000 at full retirement age, their spouse (who has not earned 40 Social Security credits) would be entitled to an auxiliary benefit of 50% of the worker’s benefit, or $1,000. In this case, the total family payout is $3,000.
However, if the worker’s PIA is $3,300, the FMB for the family would be calculated at 150% of the worker’s PIA, resulting in a maximum of $4,950. If additional family members, such as a disabled child, are also receiving auxiliary benefits, the family’s total benefits may exceed the maximum.
If the family’s total benefit exceeds the FMB, the auxiliary benefits will be reduced. For example, if the worker has a disabled child who is entitled to 50% of the worker’s benefit ($1,000), the family’s total benefits would be $4,000, which exceeds the $3,000 maximum. In such cases, each auxiliary benefit would be reduced proportionally to fit within the limit.
Survivor Family Maximum Benefit
When a worker passes away, their minor children are entitled to survivor benefits, which are calculated as a percentage of the worker’s PIA. Typically, each child receives 75% of the deceased worker’s PIA until age 18 (or age 19 if still in high school).
For example, if the deceased worker’s PIA is $2,000, each child would receive $1,500, bringing the total survivor benefits for two children to $3,000. In this case, no reduction is necessary, as the total does not exceed the FMB.
Key Notes About the Family Maximum Benefit
- The FMB applies only to Auxiliary Benefits: The worker’s own Social Security benefit is not reduced by the FMB. Only the benefits received by family members (such as a spouse or children) are subject to the FMB.
- Benefits for Caregivers: A spouse caring for the minor children of a deceased or disabled worker is entitled to benefits until the children turn 16. These benefits are also counted toward the FMB.
- Earnings Test: The earnings test may apply to auxiliary benefits, meaning that family members may see a reduction in their benefits if they earn above certain thresholds.
By understanding how the Family Maximum Benefit works, workers and their families can better plan for their Social Security benefits, ensuring that they maximize the benefits available without exceeding the family limit.
