This Is the Average Social Security Benefit for Age 72

Source The Motley Fool

Social Security was never intended to provide the entirety of anyone's retirement income. The fact is, however, that many of the program's beneficiaries are doing reasonably well with it. Indeed, some are doing great.

How well? That's largely a factor of age. Just for the record though, current 72-year-olds are among those collecting the biggest monthly Social Security payments.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Here's the typical 72-year-old's Social Security payment

Given that the average monthly payment for all retirees currently stands at $1,976, it would be easy to understand if your expectations of the entitlement program's payouts were low.

That overall figure doesn't quite tell the whole story though. The number's being weighed down by beneficiaries who claimed benefits well before their official full retirement age (or FRA), and as such are collecting considerably less than they could be.

The average monthly payment is also dragged even lower by beneficiaries currently in their 80s who -- by virtue of being born during or just before World War II -- may have suffered subpar wages and even prolonged unemployment during some of their prime working years. This, of course, means they contributed less to Social Security than their children did beginning just a decade later.

Regardless of their differing circumstances, as The Motley Fool's in-house research arm has determined, the average 72-year-old is collecting a monthly check of $2,786. That's still not huge to be sure, but it's measurably better than the overall average. Most of Social Security's beneficiaries between the ages of 70 and 75 are doing similarly well, not to mention doing measurably better than the sub-70 as well as the 80-plus cohorts.

The new norm

What gives? Why is this narrow band of retirees collecting bigger checks than the crowd older and younger than them?

As was noted, luck had at least a little something to do with it. Folks born in the U.S. between 1950 and 1955 -- the heart of the baby boom -- became adults during a time of tremendous and prolonged economic growth. As such, they were likely to be relatively strong earners for the majority of their working years. That wasn't quite the case for their parents, aunts, and uncles. People born slightly before or after that five-year stretch did pretty well for themselves too, to be clear. But those born within this narrow window were perfectly timed to benefit from the peak of post-war prosperity.

They were also born at a time right as great strides were made in medicine. Not only did this allow them to live longer, it allowed them to work longer, too, and contribute more money to Social Security on their own behalf.

Whatever the reason they're collecting above-average benefits today, on its own Social Security payments still don't provide enough income for a retiree to live on comfortably. However, the 70-to-75 cohort also saved and invested for retirement on their own.

How much? The Social Security Administration reports that in 2023, the average retiree between the ages of 65 and 74 had an income of $72,190 (or $6,015 per month), less than half of which would have come from the government-administered benefits program. The rest would have stemmed from pensions and personal retirement savings. Most of this income, of course, was spent on basic needs like food, housing, and healthcare.

That dynamic isn't apt to change in the foreseeable future either.

The $22,924 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. For example: one easy trick could pay you as much as $22,924 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. Simply click here to discover how to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
Sep 28, Mon
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth tradingNvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
Author  Irene Q.
Yesterday 06: 31
Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
placeholder
The 30-year Treasury just hit a 22-year high — and the bond market is not pricing the Fed, it is pricing the deficitThe 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Author  Irene Q.
Yesterday 07: 08
The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
placeholder
【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
Author  Suzie
7 hours ago
The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
goTop
quote