For millions of Americans, Social Security is more than just a monthly payment — it’s the main source of income after retirement. A new report from The Senior Citizens League shows that around 21.8 million retired people depend entirely on Social Security for their living expenses.
If you’re thinking about your retirement or already planning for the future, it’s important to understand how much you might receive and what factors decide your benefit amount. Here’s everything you need to know in simple terms.
Average Social Security Payments for Retirees
The average Social Security benefit for someone aged 70 is $2,037.54 per month. But the amount isn’t the same for everyone. For example, on average:
Men receive about $2,257.32
Women receive about $1,815.55
The reason for this difference is mainly due to income history. Men have often earned more over their careers, which results in higher benefits. However, this gap is slowly closing as more women join the workforce and earn higher salaries over time.
What Decides Your Social Security Benefit Amount?
Your monthly benefit depends on two major things:
1. Your lifetime earnings
Social Security checks your highest-earning 35 years, adjusts those amounts for inflation, and uses them to calculate your monthly benefit. This figure is called your Primary Insurance Amount (PIA). You get this full amount when you reach your Full Retirement Age (FRA) — usually between 66 and 67 depending on your birth year.
2. The age you start receiving benefits
If you start taking benefits after your FRA, your monthly amount increases. For every year you delay, you can get around 8% more, up until age 70. This is why those who wait until 70 to claim benefits often receive more than people who start early.
Can You Increase Your Benefits?
If you’re already getting Social Security, it’s hard to change your amount. But if you’re still working, there are ways to improve your future payout:
Try to earn more during your working years, especially in the 35 years with the highest income.
Delay your claim until full retirement age or even age 70, if possible.
Keep track of your earnings record on the official Social Security website to make sure there are no errors.
It’s not easy, but planning early can help make retirement more financially secure.
The Overlooked $23,760 Social Security Boost
Many retirees don’t know that they could increase their yearly income by as much as $23,760 with smart Social Security strategies. These include:
Knowing the best time to start claiming
Understanding spousal benefits
Avoiding early withdrawals
Coordinating benefits with your spouse
These strategies are legal and part of the system, but not everyone uses them. If you’re not sure where to start, speak with a certified financial planner or retirement advisor who understands Social Security rules.
Social Security is a key part of retirement for millions of Americans. While the average benefit varies based on your income history and the age you retire, knowing the basics can help you make better financial decisions.
Whether you’re years away from retirement or already planning to apply for benefits, understanding how the system works — and when to act — can help you get the most out of what you’ve earned over a lifetime of work.
