Social Security, established 90 years ago during the New Deal to help Americans cope with the financial crisis of the Great Depression, remains a critical financial lifeline for millions. For the vast majority of Americans, Social Security taxes come out of every paycheck — 6.2% if you’re employed or 12.4% if you’re self-employed.
Social Security Taxes Apply to All Income — Including the Rich
For most workers, Social Security taxes are withheld on their income up to $176,100 (as of 2025). Once that threshold is met, they no longer pay Social Security taxes for the remainder of the year.
This is not the case for the ultra-wealthy, but they still contribute to the system, even though they reach the cap on their income far quicker. A CEO earning $20 million annually, for example, will hit the tax limit in just three days. Despite this, they still pay into the same system.
Same Benefits, Same Rules for Everyone
After paying the required taxes, high earners, including billionaires, are eligible for Social Security benefits when they retire. The maximum benefit available in 2025 for someone claiming at 70 is $5,108 per month.
Regardless of whether you’re a CEO or a schoolteacher, the formula for benefits is the same. The longer you wait to claim Social Security (up to age 70), the larger your monthly benefit will be.
A billionaire claiming at 70 will receive the same $5,108 a month as someone who has worked for the same number of years and paid into the system at the maximum income level.
Billionaires Must Meet the Same Requirements
Billionaires are held to the same standard as everyone else when it comes to claiming Social Security benefits. They must earn 40 work credits, which typically takes 10 years of work. They also must pay Social Security taxes on their income, just like the rest of us. There are no special privileges or shortcuts for the wealthy in the system.
Losing Everything—Even the Ultra-Wealthy
While it’s rare, even the rich can lose their fortunes. People like Patricia Kluge, Bernie Madoff, and Jocelyn Wildenstein serve as examples of how financial calamities can strike, regardless of one’s wealth.
Kluge, once a wealthy heir, lost her fortune during the 2008 housing crisis, while Madoff went to prison for orchestrating a massive Ponzi scheme that cost investors billions. Wildenstein, a former billionaire, filed for bankruptcy in 2018, and now survives on a modest monthly Social Security payment.
For individuals who face the loss of everything, Social Security can provide a vital financial cushion.
The $23,760 Social Security Bonus That Many Retirees Miss
While Social Security benefits are an essential lifeline, there are lesser-known ways to maximize these benefits. A strategy called the “Social Security bonus” could potentially increase your yearly income by as much as $23,760.
Learning how to navigate Social Security optimally could help ensure a more comfortable retirement, providing peace of mind even if unexpected financial hardships arise.
Maximizing Social Security can significantly improve your financial situation during retirement — a fact that’s beneficial for everyone, from the average American worker to the wealthy.
