Nearly 68 million U.S. adults will receive a Social Security check in 2024, and benefits make up a significant source of income among retirees. In fact, 37% of men and 42% of women rely on their checks for at least half of their retirement income, according to 2024 data from the Social Security Administration.
While the program is a lifeline for millions of older adults, Social Security has changed a lot over the past decade. Average payments have gone up substantially, but that's not necessarily enough to solve the challenges the program is facing.
This is how the average and maximum benefit amounts have changed since 2014 -- as well as some not-so-good news about the future of Social Security.
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Retirees are collecting larger checks
As wages and general costs of living continue to increase, it's no surprise that Social Security payments have also risen over the past decade.
Several factors influence benefit amounts, so your payment is unique to your career history. Your benefit is based on your wages throughout the 35 years of your career you earned the most. The age you begin claiming will also have a direct impact on your benefit, as the longer you wait to file, the more you'll receive each month.
To collect the maximum benefit, you'll need to work for at least 35 full years while consistently reaching the maximum taxable earnings limit -- which is the highest income subject to Social Security taxes.
Since 2014, this is the average benefit amount among retirees, as well as the maximum possible benefit for someone filing for Social Security at their full retirement age:
| Year | Average Monthly Benefit Among Retired Workers | Maximum Monthly Benefit at Full Retirement Age |
|---|---|---|
| 2014 | $1,294 | $2,642 |
| 2015 | $1,329 | $2,663 |
| 2016 | $1,342 | $2,639 |
| 2017 | $1,360 | $2,687 |
| 2018 | $1,404 | $2,788 |
| 2019 | $1,461 | $2,861 |
| 2020 | $1,503 | $3,011 |
| 2021 | $1,544 | $3,148 |
| 2022 | $1,658 | $3,345 |
| 2023 | $1,825 | $3,627 |
| 2024 | $1,919 | $3,911 |
Source: Social Security Administration. Table by author.
More recently, the average and maximum benefits have increased substantially year-over-year. This may be partly due to soaring inflation and higher-than-average cost-of-living adjustments, resulting in larger benefit increases.
There's bad news looming for retirees
Despite much larger average and maximum payments in 2024 compared to 2014, current retirees may not actually be better off financially.
Retirees may be collecting larger checks, but those payments don't go as far as they used to. In fact, benefits have lost a whopping 20% of their buying power since 2010, according to a 2024 report from nonprofit group The Senior Citizens League.
The study also found that to maintain the same buying power as in 2010, the average retiree today would need an extra $370 per month. Finally, in eight of the last 15 years, the inflation rate has surpassed the cost-of-living adjustment (COLA) for that year.
In other words, although retirees have been receiving higher-than-average COLAs in recent years resulting in higher average benefits, Social Security is still failing to keep up with rising costs. If this trend continues, retirees may have a harder time relying on their benefits in the coming decades -- even if their checks get bigger and bigger each year.
Social Security can go a long way toward making ends meet in retirement. Though it's good news that benefits are increasing year after year, the loss of buying power will sting many retirees. While there may not be much you can do to stop that from happening, staying informed can help you make the best choices for your retirement.
