Many workers are dreaming of retirement -- whether it's decades away or coming up soon. Either way, it's smart to get at least a rough idea of how much income you can expect from Social Security -- so that you can plan accordingly to set up sufficient other income streams to support you in your post-working life.
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Here are some things to know about Social Security benefits:
- The overall average monthly Social Security retirement benefit was $1,924 as of October. That's about $23,000 annually.
- You can start collecting your benefit checks as early as age 62, but that will result in shrunken checks (though many more of them), or you can delay until age 70, with each year you delay beyond your full retirement age (66 or 67 for most of us) boosting your benefits by about 8%. (The best age to claim benefits is 70 for most people.)
- There are ways to increase your future benefits, such as increasing your income.
- Social Security benefits are adjusted annually for inflation, via cost-of-living adjustments (COLAs).
Here's a look at how average benefits have changed over time:
|
Year |
Average Social Security benefit for retirees |
|---|---|
|
1994 |
$697 |
|
1999 |
$804 |
|
2004 |
$955 |
|
2009 |
$1,164 |
|
2014 |
$1,329 |
|
2019 |
$1,503 |
|
2023 |
$1,907* |
|
2024 |
$1,924** |
Data source: Social Security Administration, 2023 Annual Statistical Supplement. *As of January 2024. **As of October 2024.
You can see, for example, that benefits have roughly doubled since 2024. The fact that Social Security benefits have increased over time is wonderful, as it can help you keep up with inflation. But remember that Social Security is facing a funding challenge within the decade, and it may end up paying you less than you're due. So plan to set up other retirement income streams.
And in the meantime, it's smart to set up a my Social Security account at the Social Security Administration (SSA) website so that you get an estimate of how much you can expect from Social Security based on your earnings.
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