Social Security has been a safety net for retirees for decades, but it looked a lot different 60 years ago. Back then, any boost to benefits needed Congress to step in and approve it. That all changed in 1975, thanks to the introduction of automatic cost-of-living adjustments (COLAs).
COLAs are intended to help Social Security checks keep up with inflation. They are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of living. Over the years, rising inflation has pushed up costs for essentials like housing and groceries. As a result, Social Security benefits have increased significantly.
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Average Social Security retirement benefit since 1964
First, here's a quick look at the average benefits for retirees over the last six decades:
|
Year |
Average Monthly Benefit for Retirees |
|---|---|
|
1964 |
$77.57 |
|
1974 |
$188.21 |
|
1984 |
$460.57 |
|
1994 |
$697.34 |
|
2004 |
$954.89 |
|
2014 |
$1,328.58 |
|
2024 |
$1,925.46* |
Data source: Social Security Administration, 2024 Annual Statistical Supplement. *As of November 2024.
Back in 1964, the average monthly Social Security retirement benefit was just $77.57. That's about $931 annually. Adjusted for inflation, that amount would be worth approximately $784 per month in today's dollars, based on the Bureau of Labor Statistics inflation calculator.
As of November 2024, the average retired worker is receiving $1,925.46 per month, or roughly $23,100 per year. Your benefits could be higher depending on when you start claiming and how much you earned during your career. While that's a substantial increase compared to 1964, even after factoring in inflation, it raises an important question: is it enough?
How far your monthly Social Security checks stretch depends on whether your expenses have outpaced overall inflation. One Motley Fool survey shows that over half of retirees believe the 2025 2.5% COLA falls short. That's why it's important to explore other sources of income -- like dividend paying assets -- so you don't miss a beat during retirement.
