If I Could Tell All Retirees 1 Thing About Social Security, I'd Say to Do This Before You Claim Benefits
Key Points
Millions of adults rely on Social Security, but many don't know how much they'll receive in benefits.
Checking your benefit amount is an easy way to help plan for the future.
In some cases, it can also be helpful to see how your benefit compares to the average retiree's.
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If you're planning to retire soon, that means you'll probably be claiming Social Security in the near future, too. While this is an exciting chapter in life, the right strategy is key to setting yourself up for a secure financial future. Before you file for benefits, there's one thing every single person needs to do first.
The best Social Security move you could make
Do you know how much you'll collect in benefits once you begin claiming? If not, you're in good company -- more than 40% of U.S. adults not currently receiving Social Security are unsure of what their future benefit amount will be, according to a 2024 report from the Nationwide Retirement Institute.
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Knowing what to expect from Social Security is a crucial part of the planning process. When you know roughly what you'll receive each month in benefits, it will be easier to determine how much of your income will need to come from savings or other sources.
Fortunately, it only takes a few minutes to check your estimated benefit. By checking your statements -- through paper statements in the mail or your mySocialSecurity account online -- you can see an estimate of your future benefit based on your real earnings throughout your career.
This is also a great time to verify that all your information with the Social Security Administration is accurate. If any of your income is missing or has incorrect figures listed, that will affect your benefit amount -- potentially leading to a lower payment than you deserve.
A couple of things to remember
Keep in mind that your Social Security benefit can change between now and when you file for benefits, especially if you still have a few years left in your career.
The Social Security Administration calculates your benefit by taking an average of your wages throughout the 35 years of your career that you earned the most. If you still have a few high-earning years left before you retire, your actual benefit may end up slightly higher than your estimate.
Also, the age you file for benefits will have an enormous impact on your monthly payment. Your estimated benefit, as shown on your statements, is the amount you'll receive by filing at your full retirement age (FRA) -- which is age 67 for everyone born in 1960 or later.
If you file before your FRA, it will permanently reduce your benefit by up to 30%. Delaying benefits past your FRA will result in a monthly bonus of up to 32% per month, in addition to your full benefit amount.
Not only is it important to check your estimated benefit, then, but it's also good to know how your claiming age will affect that number. From there, it will be easier to determine exactly how much you'll receive from Social Security.
The average Social Security benefit by age
Several factors will affect your benefit amount, including the age you begin claiming and the length of your career. This is why it's essential to check your estimate based on your specific information, as everyone's benefit will be unique.
That said, it can sometimes be helpful to see where the average retiree stands on benefits. This is the average benefit among retired workers of various ages, according to December 2024 data from the Social Security Administration:
| Age | Average Monthly Benefit |
|---|---|
| 62 | $1,342 |
| 63 | $1,364 |
| 64 | $1,425 |
| 65 | $1,611 |
| 66 | $1,764 |
| 67 | $1,930 |
| 68 | $1,980 |
| 69 | $2,040 |
| 70 | $2,148 |
Data source: Social Security Administration.
Again, these are only averages, and everyone's benefit will differ. Rather than relying too much on these numbers, it's best to check your own estimated benefit to see how much you can plan to rely on Social Security in retirement.
There's loads of planning that goes into retirement, and knowing your future benefit amount can make it far easier to determine whether you're on track. Before you file for benefits, make sure you have an accurate idea of how much you can expect to collect each month.
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