The Social Security Administration paid close to $97 billion to retired workers during March 2024. Individual checks range from under $300 for those with limited work histories up to the $4,873 maximum monthly benefit.
The average check falls in the middle, but many feel it's not enough. Below, we'll take a closer look at what that average is and why it'll probably go up in the near future.
Image source: Getty Images.
How far does the average Social Security check go in 2024?
The average Social Security benefit for a retired worker as of March 2024 is about $1,913 per month, while the average spousal benefit is roughly $912 per month. The following table shows how much single and married seniors could expect from the average Social Security checks in 2024.
|
Household Type |
2024 Annual Social Security Benefit |
|---|---|
|
One retired worker |
$22,956 |
|
One retired worker, one spouse claiming a spousal benefit |
$33,900 |
|
Two retired workers |
$45,912 |
Source: Social Security Administration and author's calculations.
These aren't inconsequential sums, but living off them alone is challenging. The average household headed by an adult 65 and older spent close to $58,000 in 2022, according to the most recent data. Based on this, a single adult earning the average benefit would still need to come up with about $35,000 on their own to cover their expenses. A couple with one retirement and one spousal benefit would still need $24,000 -- or possibly more, considering that inflation has driven up costs since then.
Those hoping for more help from Social Security might be happy to know that the average monthly benefit is rising. But what that means for your checks is tougher to predict.
Why is the average Social Security check rising?
There are two main reasons the average Social Security benefit rises over time.
Average incomes are rising
The Social Security Administration bases your benefit on your average monthly income during your 35 highest-earning years, adjusted for inflation. This is known as your average indexed monthly earnings (AIME). Incomes tend to rise over time, which means younger Social Security beneficiaries typically have higher average AIMEs -- and thus, higher benefits -- than older workers. Over time, this inches up the average monthly benefit.
It doesn't affect your monthly checks, though. When you apply for Social Security, you're usually locking in your monthly benefit. Few things change your checks after this, apart from cost-of-living adjustments, the earnings test, or pausing your Social Security benefits (discussed below).
Cost-of-living adjustments (COLAs)
Social Security cost-of-living adjustments (COLAs) boost all seniors' checks in most years to help counter inflation. The biggest ones usually occur when inflation is highest. In 2022, we saw a 40-year-high COLA of 8.7%. The 2023 COLA was just 3.2%.
We won't know the 2024 COLA until October because it's based on third-quarter inflation data. But the Senior Citizens League estimates it will be about 2.6%. That would boost the $1,931 average monthly check to $1,981 per month -- a $50 increase.
Many feel the COLAs don't go far enough, with more than 70% of seniors saying their expenses increased by more than their Social Security COLA last year. So while average benefits are increasing, some argue their buying power is dropping over time.
How can I make my Social Security checks go as far as possible?
You can try several things to stretch your Social Security dollars further, whether you're already claiming or just looking toward the future.
If you're not claiming
Workers who haven't yet applied for Social Security can do the following to boost their checks:
- Work at least 35 years: Your AIME always looks at 35 years of income. Those with shorter work histories have zero-income years included in their benefit calculations, which shrinks their checks.
- Boost your income today: Raising your income -- perhaps by switching to a better-paying field or starting a side hustle -- can boost your future Social Security checks if you earn less than the maximum income subject to Social Security taxes ($168,600 in 2024).
- Choose the right claiming age: Workers with short life expectancies and those without other sources of retirement income often do better applying right at 62, but delaying Social Security results in a larger lifetime benefit for most.
- Build your nest egg: The more personal savings you have, the less dependent you'll be on Social Security.
If you're already claiming
When you're already claiming Social Security, try one or more of these steps:
- Reduce your expenses: Whenever possible, cut back on discretionary spending to help your money go further.
- Consider working: You could return to work, even part-time, to give yourself a steady source of income to supplement your monthly checks.
- Apply for Supplemental Security Income (SSI): This is a monthly benefit the Social Security Administration administers to blind people, disabled people, and low-income seniors. The maximum monthly federal benefit in 2024 is $943 for an individual or $1,415 for a couple. Some states chip in even more.
- Consider pausing your checks: Those who applied for Social Security less than a year ago can withdraw their Social Security application if they pay back all they've received so far. It's essentially a do-over. Otherwise, you may be able to suspend your benefits at your full retirement age (FRA). This grows your checks a little each month until you reach 70 or request your benefits start again.
Whether you're claiming or not, don't forget to keep an eye on future changes to Social Security, as this could affect your financial strategy.
