It's human nature to compare ourselves against others. We begin doing it as kids. And we continue doing it as we grow older.
You might not think anyone would care about comparing their Social Security benefits to what other people receive. But, hey, I'm writing this article about it -- and you're reading it. Are you beating the average Social Security retired worker benefit for your age group? Read on to find out.
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Average Social Security retirement benefits by age
The Social Security Administration (SSA) publishes detailed data that slices and dices Social Security benefits payments in lots of ways. One of those ways is how much on average retired workers receive in benefits at various ages. Following is a table based on SSA's data that will tell you how your Social Security benefits stack up against the average for your age group:
| Age | Avg. Monthly Benefit | Age | Avg. Monthly Benefit |
|---|---|---|---|
| 66 | $1,971.99 | 79 | $2,032.67 |
| 67 | $2,013.05 | 80 | $2,047.08 |
| 68 | $1,985.23 | 81 | $2,035.99 |
| 69 | $1,959.30 | 82 | $2,013.97 |
| 70 | $1,980.29 | 83 | $1,959.16 |
| 71 | $1,970.72 | 84 | $1,928.58 |
| 72 | $1,954.66 | 85 | $1,880.22 |
| 73 | $1,977.61 | 86 | $1,818.12 |
| 74 | $2,016.89 | 87 | $1,786.72 |
| 75 | $2,018.57 | 88 | $1,400.69 |
| 76 | $2,054.20 | 89 | $1,368.99 |
| 77 | $2,012.96 | 90 or older | $1,322.95 |
| 78 | $2,018.62 |
Data source: Social Security Administration.
There are a few things to note about this data. Most importantly, it's from December 2022. The averages have definitely changed since then and will change even more as the new cost-of-living adjustments (COLAs) go into effect in January 2024. Also, the average monthly benefits shown in the table are for retired workers whose benefits impacted by the early retirement reduction or the delayed retirement credit.
How to beat the averages
I have good news for those who haven't begun collecting Social Security benefits. There are several ways to beat the averages for your age group when you do begin receiving benefits.
First, you can resist the temptation to collect Social Security benefits before your full retirement age (FRA). SSA will reduce your benefits by five-ninths of 1% for each month before your FRA up to 36 months. If you begin receiving retirement benefits more than 36 months before your FRA, SSA will reduce your benefits by another five-twelfths of 1%. For anyone whose FRA is 67, collecting benefits at the earliest age allowed (62) would translate to a 30% benefit cut.
Even better, you can delay receiving retirement benefits beyond your FRA. Doing so will boost your retirement benefit by 8% per year with no further increases after you reach age 70.
Another way to beat the averages is to earn more money during your working years before you file for Social Security. The more you make, the higher your benefit will be.
On a similar note, SSA uses your 35 highest-earnings years to calculate your retirement benefits. If you didn't participate in the workforce long enough to accumulate 35 years, working a little longer could increase your benefits. This also applies if you worked in a job for a while that wasn't eligible for Social Security benefits.
What if you're already receiving Social Security benefits that are below the average for your age? Unfortunately, there's really not anything you can do to change the situation. However, comparing ourselves against others is overrated anyway, even if it's human nature to do so.
