Just about all of us are looking forward to retirement, and many, if not most, of us are assuming that Social Security income will be rather important to us then. So it's natural to wonder just what we might expect from Social Security. Here are some answers to that question.
First, know that the overall average monthly Social Security retirement benefit was $1,919 as of July. That amounts to about $23,000 annually. Social Security benefits are increased nearly annually, though, thanks to cost-of-living adjustments (COLAs).
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That probably seems low to you -- and it is. One reason is because many people claim their benefits early, such as age 62 or 63. We can start collecting as early as age 62, or we can delay, up to age 70. Starting early means smaller benefit checks -- though an early claimer will be collecting many more of them than someone who waits until, say, 70. (When to start receiving your Social Security benefits is a big decision.)
For most folks, the best strategy is to wait until age 70 if you can, in order to maximize your total benefits received. The average monthly Social Security retirement age for those aged 70 at the end of 2023 was about $2,038, or close to $24,500 annually. That's clearly better than $1,919, but not by a lot. Remember, though, that those who have earned more than average will be collecting more than average.
You can get a much better idea of how much to expect from Social Security by setting up a my Social Security account at the Social Security Administration (SSA) website. Do so, and you'll be able to visit your account at any time to see the latest estimates of your future benefits.
Know, too, that there are multiple ways to increase your Social Security benefits, beyond delaying until age 70. Learn more about Social Security, and your future may end up more secure.
