If Your Monthly Social Security Check Is Larger Than This, You're Beating the Average Retiree

Source Motley_fool

Key Points

  • Your Social Security benefits are based on your personal earnings history.

  • Your filing age also affects how much money you get each month.

  • Working longer and delaying your claim could lead to larger monthly checks.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

For many people, Social Security serves as a crucial source of retirement income. And without those monthly checks, many retirees would not be able to make ends meet.

You may be wondering if your monthly benefit is higher, lower, or similar to the average Social Security check today. Here's what the average benefit looks like right now, and how you can get more Social Security for your retirement.

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Close-up of overlapping U.S. Social Security cards on a white background

Image source: Getty Images.

The average Social Security benefit today

Social Security pays different types of benefits, so it's important to clarify that for this discussion, we're talking about retirement benefits. Today's average monthly retirement benefit is about $2,089, which amounts to a little more than $25,000 per year.

Of course, the average monthly benefit is expected to rise significantly in January. At that point, benefits will be eligible for a 3.6% cost-of-living adjustment.

How to get more than the average Social Security benefit

If you aren't getting Social Security yet but would like to collect more than the average benefit, there are a couple of key steps you can take. But first, let's review how those benefits are calculated.

Social Security takes your 35 highest-paid years of wages into account when determining your monthly benefit. Earlier wages in that formula are adjusted for inflation.

From there, your filing age determines how much of your benefit you get to collect. If you file at full retirement age, which is 67 for anyone born in 1960 or later, your Social Security checks won't be reduced or increased.

You can claim Social Security as early as age 62. But for each month you file before full retirement age, your benefits get cut.

You can also delay your claim past full retirement age for larger checks. Each year you wait until you turn 70 gives your benefits an 8% boost.

If you want more Social Security in retirement, you should focus on growing your wages and filing for benefits as late as possible. If you can wait until age 70, you'll score a 24% increase in your benefits compared to filing at 67.

Also, the more money you earn, the larger your benefits might be. So if you find that you're earning a nice paycheck at the tail end of your career, extending your time in the workforce a bit could lead to more generous benefits.

Remember, Social Security is an income source that's guaranteed for life. Larger checks could provide a lot more long-term stability. So if you're eager to get more than the average monthly retirement benefit, aim to file strategically and boost your wage record as much as you can.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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