If Your Monthly Social Security Benefit Tops This Amount, You're Above the Typical Retiree

Key Points

• Social Security benefits depend on your own earnings history.

• The age you choose to file also influences your monthly payment.

• Staying in the workforce longer and delaying your claim can increase your benefit.

For many Americans, Social Security is an essential part of retirement income. Without those monthly payments, a large number of retirees would struggle to cover everyday expenses.

You may be curious whether your own benefit is above, below, or roughly in line with the average check. Here’s a look at the current average benefit and a few ways to potentially raise your own Social Security income in retirement.

The average Social Security benefit

Because Social Security offers several kinds of benefits, it’s important to note that this discussion focuses on retirement benefits. The average monthly retirement check is about $2,089, or a little more than $25,000 a year.

That average is also expected to increase soon, when benefits become eligible for a 3.6% cost-of-living adjustment.

Ways to receive more than the average benefit

If you have not yet started Social Security but want to collect more than the average amount, there are two major levers to consider. First, it helps to understand how the program calculates benefits.

Social Security bases your monthly payment on your 35 highest-earning years, with earlier wages adjusted for inflation.

Your filing age then determines how much of that benefit you receive. If you claim at full retirement age, which is 67 for anyone born in 1960 or later, your monthly amount is neither reduced nor increased.

You may begin claiming as early as age 62, but each month you file before full retirement age reduces your benefit.

You can also wait beyond full retirement age to increase your check. Each year you delay until age 70 adds 8% to your benefit.

To bring in more Social Security income later on, the main goals are to increase your earnings and delay filing as long as you can. Waiting until 70 can lift your benefit by 24% compared with claiming at 67.

Higher pay can also translate into larger Social Security checks. So if your earnings are strong near the end of your career, staying employed a little longer may lead to a more generous retirement benefit.

Since Social Security provides guaranteed income for life, larger monthly checks can offer more financial stability over the long run. If you want to beat the average retiree’s benefit, the best approach is to file wisely and build the strongest earnings record possible.