You’re Ahead of the Typical Social Security Benefit If You Receive More Than This Each Month

Key Points

• The average monthly Social Security benefit for retired workers was $2,088.79 as of the latest available data.

• The SSA bases retirement benefits on an average of your wages from your 35 highest-earning years.

• Although the average older household spends $61,432 a year, Social Security is intended to replace only about 40% of pre-retirement income.

If you want to see how your Social Security payment compares with the average, there is a simple benchmark to use. The average monthly benefit for retired workers is $2,088.79, according to the Social Security Administration’s Monthly Statistical Snapshot. That works out to roughly $25,065.48 a year.

Keep in mind that this is just an overall average for retired workers in the system, from age 62 through age 99 and older. Since it includes such a broad group, your own payment may look very different. Your benefit depends largely on your earnings history and the age at which you claim.

What the average really looks like

Age has a major effect on the numbers. The average benefit for people age 62 is only $1,424.40 per month, based on the most recent available data. By contrast, the average for those age 70 is $2,274.68. The difference exists because people who delay claiming receive larger monthly checks for life.

Gender also affects where someone stands relative to the benchmark. According to the SSA, men receive a higher average benefit than women. The table below shows the overall average for each group across all ages.

How to get above the benchmark

To end up above the average, the SSA looks at three main factors: how long you worked, how much you earned, and when you claimed. Your benefit is based on the average wages from your 35 highest-earning years. Earlier earnings are adjusted for inflation and then run through the primary insurance amount, or PIA, formula.

Full retirement age ranges from 66 to 67, depending on your birth year, and it is 67 for anyone born in 1960 or later. Claiming at 62 can reduce your PIA by as much as 30%. Waiting until 70 earns delayed retirement credits, which increase your benefit by 8% for each year you delay beyond full retirement age.

Higher lifetime earnings and more years in the workforce can also raise your check. That is not always under your control, since health problems or caregiving responsibilities can interrupt a career. Still, more years of work usually improve the calculation because the SSA does not need to fill your 35-year earnings record with zeros.

Even if your benefit is above average, Social Security likely will not cover all of your expenses. The program is designed to replace only about 40% of pre-retirement income. Most retirees need considerably more than that to live comfortably. According to the Bureau of Labor Statistics, the average household headed by someone age 65 or older spent $61,432 in the most recent year available.

Inflation adjustments help, but they do not eliminate the gap. A 3.6% cost-of-living adjustment will take effect in 2027, adding about $75 a month to the average benefit. Even with those increases, most retirees still depend on savings or other income to make ends meet.

In the end, beating the Social Security average is only one reference point. What really matters is whether your benefit covers your actual retirement costs.

How Social Security fits into your retirement plan

An above-average Social Security check is helpful, but knowing how it compares with the average does not tell you what share of your retirement spending it will cover. To understand that, you need to estimate your own retirement expenses.

Some people spend less after leaving work, but that is not true for everyone. If you expect to travel more, for instance, your retirement spending could be higher than it was during your working years.

You can estimate your future benefit at different claiming ages by creating a my Social Security account and using the benefit estimator tool. Once you have a rough estimate, subtract it from your projected monthly retirement expenses.

Then build a plan to cover the difference. That may include savings, a pension if you have one, and possibly part-time work.

For more on how Social Security affects retirement, see this guide.