Social Security benefits can be a lifeline for millions of older Americans. In fact, around 37% of men and 42% of women rely on their monthly checks for at least half of their income in retirement, according to the Social Security Administration.
While everyone's retirement needs are different, sometimes it can be helpful to see how your benefit amount stacks up to the average. And if your payments are falling short, there are a few things you can do to boost your monthly income.
How much is the average Social Security benefit?
Your benefit amount is based on several factors, including the length of your career, your lifetime earnings, and the age you begin claiming.
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As of March 2023, the average retired worker receives around $1,833 per month, according to the Social Security Administration. The average spousal benefit amount is around $898 per month, and the average person receiving survivors benefits collects roughly $1,449 per month.
If you haven't started receiving Social Security yet and are unsure of your benefit amount, you can check your paper statements (if you receive them in the mail) or online by creating a mySocialSecurity account.
From there, you can see an estimate of your future benefit amount based on your real earnings. Keep in mind that if you still have many years left before retirement, this number may change depending on how much you earn in income between now and when you retire.
Simple ways to boost your benefits
If your benefit amount is falling short of your expectations (or if you simply want to maximize your monthly income), there are ways to boost your benefits.
As of 2023, the most you can collect from Social Security is $4,555 per month, and these strategies can help you get as close as possible to the maximum payments.
1. Delay claiming benefits
Perhaps the simplest way to increase your checks by hundreds of dollars per month is to wait a few years to begin claiming.
Age 62 is the earliest you can file, but for every month you claim before your full retirement age (FRA), your benefits will be reduced. Your exact FRA will depend on your birth year, but for everyone born in 1960 or later, it's 67 years old.
Claiming at your FRA will give you your full benefit amount based on your work record (which is the amount you'll see on your statements). File at 62, and your benefits will be permanently reduced by up to 30%. But if you delay benefits up to age 70, you'll receive a bonus of at least 24% on top of your full benefit amount.
2. Ensure you've worked long enough
The Social Security Administration calculates your benefit amount by taking an average of your wages throughout the 35 highest-earning years of your career. That number is then adjusted for inflation, and the result is the amount you'll collect at your FRA.
If you haven't worked a full 35 years by the time you file, you'll have zeros added to your average to account for the time you weren't working. That will bring down your average and result in a lower benefit amount.
Also, sometimes working more than 35 years can boost your payments. Chances are you're earning more now than you were at the start of your career. Because the Social Security Administration only includes your 35 highest-earning years, working more years when you're earning a higher income can increase your earnings average, thus increasing your benefits.
3. Get as close as you can to the wage cap
As of 2023, only income up to $160,200 per year is subject to Social Security taxes. The more you earn up to this limit, then, the higher your benefit amount will be.
To earn the maximum $4,555 monthly payments, you'll need to consistently reach the wage cap throughout your career. But if that's out of reach, getting as close as you can to this limit will still increase your benefits. Even if you're earning nowhere near six figures, boosting your income even slightly can result in larger checks.
Social Security is a vital source of income for millions of retirees, so it pays to know how much you can expect to receive. By checking your benefit amount (and seeing if there are ways to collect more), you can set yourself up for a more comfortable retirement.
