If you’re planning to retire soon, claiming Social Security is likely on your mind. While retirement is an exciting time, it’s important to have the right strategy to secure your financial future. Before you apply for Social Security benefits, there’s one important thing everyone should do first.
The Best Social Security Move You Can Make
Do you know exactly how much you’ll get from Social Security when you start claiming? If not, you’re not alone. According to a 2024 report from the Nationwide Retirement Institute, more than 40% of adults who aren’t yet receiving Social Security are unsure about how much they’ll collect in the future.
Knowing how much you’ll receive from Social Security is a key part of retirement planning. Once you have an estimate of your monthly benefits, it’ll be easier to figure out how much money you’ll need from your savings or other income sources.
Luckily, finding this information is simple. You can easily check your estimated benefit by looking at your Social Security statements. You can get these statements in the mail, or you can log into your mySocialSecurity account online. These statements show an estimate based on your real earnings throughout your career.
This is also a good opportunity to verify that the Social Security Administration (SSA) has your correct information. If there are mistakes in your income records, it could lower your benefits, meaning you’ll receive less than you should.
A Few Things to Remember
Your Social Security benefits can change before you actually start claiming them, especially if you’re still working and earning a good income.
The SSA calculates your benefits by averaging the highest 35 years of income during your career. So, if you still have a few high-earning years ahead of you, your actual benefits might end up being higher than what your current estimate shows.
Additionally, the age at which you start claiming Social Security will have a huge impact on your monthly payment. Your estimate shows the amount you’ll get if you file for benefits at your full retirement age (FRA), which is 67 if you were born in 1960 or later.
If you claim benefits before your FRA, your monthly payment will be reduced by as much as 30% for the rest of your life. On the other hand, if you delay claiming past your FRA, you could receive up to a 32% increase in your monthly payment.
So, it’s not just important to check your estimated benefit—it’s also crucial to know how the age at which you file will affect the amount you get.
Average Social Security Benefits by Age
There are many factors that determine how much your Social Security benefits will be, including the age you start claiming and how long you’ve worked. That’s why it’s best to check your own estimate based on your personal situation. However, it can be helpful to see the average benefit at different ages.
Here are the average monthly benefits for retirees at various ages, based on December 2024 data from the SSA:
| 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 |
Keep in mind, these are just averages, and your benefits may differ. Instead of focusing on these numbers too much, it’s best to check your own estimated benefit to get a more accurate idea of what you can expect in retirement.
Planning for Your Retirement
Retirement planning involves many steps, but knowing your Social Security benefit amount is a key piece of the puzzle. By checking your future benefit, you can more easily figure out whether you’re on track financially. Before you file for benefits, make sure you have a clear idea of how much you’ll receive each month from Social Security.
The $23,760 Social Security Bonus Most Retirees Overlook
If you’re like many Americans, you might be behind on your retirement savings. However, there are some Social Security secrets that could help you boost your retirement income.
One little-known trick could add as much as $23,760 more to your yearly Social Security benefits! By learning how to maximize your benefits, you could retire with more financial confidence. To find out how to make the most of your Social Security benefits, consider joining Stock Advisor and learn these important strategies.
