Social Security is a critical source of income for many older adults, and for some, it's the only income they have. In fact, around 1 in 5 adults age 50 and older say they won't have any retirement income outside of their benefits, according to a 2023 report from the Nationwide Retirement Institute.
But just how realistic is it to retire on Social Security alone? Of course, that will depend largely on how much you're receiving in benefits. Monthly payments among retirees can vary widely depending on several factors, such as your income, the length of your career, and the age you begin claiming.
That said, it can still be helpful to see how much the average retiree receives from Social Security. I'll also discuss how to check your future benefit amount, as well as a few simple strategies for increasing the size of your checks.
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What's the average Social Security benefit?
Again, there are several factors affecting your monthly payments. The Social Security Administration (SSA) calculates your benefit by taking an average of your wages over the 35 highest-earning years of your career, then running that figure through a formula and adjusting it for inflation.
The result is the amount you'll receive if you begin claiming at your full retirement age (FRA). Your FRA will depend on your birth year, but it's age 67 for everyone born in 1960 or later.
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You can begin claiming Social Security as early as age 62, but doing so will reduce your payments by up to 30% compared to what you'd receive at your FRA. It's also possible to delay filing, and waiting until age 70 will result in a bonus of at least 24% on top of your FRA benefit amount.
The average benefit varies widely by age, so it's important to choose carefully when deciding when to begin claiming. According to the Social Security Administration's most recent data from December 2022, here's how much the average retired worker receives at various ages:
| Age | Average Monthly Benefit Among Retired Workers |
|---|---|
| 62 | $1,275 |
| 63 | $1,365 |
| 64 | $1,412 |
| 65 | $1,505 |
| 66 | $1,720 |
| 67 | $1,845 |
| 68 | $1,848 |
| 69 | $1,819 |
| 70 | $1,963 |
Source: Social Security Administration. Table by author.
Across all ages, the average benefit is less than $2,000 per month. While that may be enough for some people to live comfortably, most retirees will need more than that to cover all their expenses. It may be wise, then, to either bulk up your savings or find ways to increase your benefit amount.
Simple ways to boost your Social Security
Even if you're still years away from retirement, it's possible to see how much you're expected to receive from Social Security. First, you'll need to create a my Social Security account online if you haven't done so already. From there, you can check your statements to see an estimate of your future benefit based on your real earnings.
Keep in mind that if you haven't worked and paid Social Security taxes for at least 10 years, you won't qualify for retirement benefits just yet and therefore won't see an estimate. Also, this figure is the amount you'll receive at your FRA, so if you file before or after that age, it will affect the size of your checks.
If you find that you're not going to receive as much as you expected (or simply want to maximize your payments), there are a few strategies to increase your benefits:
- Delay claiming benefits: Again, waiting until age 70 to file will earn you a bonus of at least 24% per month on top of your full benefit amount, and the average worker collects $688 more per month at age 70 compared to age 62. Even if you can't delay until age 70, waiting even a year or two to file could increase your benefits by hundreds of dollars per month.
- Work for at least 35 years: Although you only need to have worked for 10 years to receive retirement benefits, your benefit is based on an average of your income throughout the 35 years of your career you earned the most. If you've worked fewer than 35 years, you'll have zeros added to your average, which will reduce your benefit amount.
- Increase your income: The higher your income, the higher your benefit will be -- up to a point. The wage cap is the highest income subject to Social Security taxes, and the closer you can get to this limit, the more you'll receive in benefits. In 2024, that limit is $168,600 per year. While you don't necessarily need to reach that cap, increasing your income even slightly can result in larger checks.
Social Security benefits were never designed to be a sole source of retirement income, but they can go a long way. By setting realistic expectations about how much you can depend on your benefits (and finding ways to increase your payments), you can head into retirement as financially prepared as possible.
