Social Security is critical to many millions of retirees, keeping lots of them above the poverty line. Whether it keeps you solvent or just enhances your financial security in retirement, Social Security is likely to be an important source of retirement income. (For most people, it's smart to have multiple income streams in retirement.)
Image source: Getty Images.
Whether you're approaching retirement or are decades away, it makes sense to get an idea of how much you might expect to receive from Social Security, as it can help in your retirement planning. You can get that idea from the Social Security Administration (SSA) itself, once you set up a my Social Security account. With an account, you can see the latest estimates of your future benefits based on the SSA's record of your earnings.
Below is a table offering some average monthly benefits for people of different ages, as of the end of last year:
|
Age |
Average Benefit, All |
Average Benefit, Men |
Average Benefit, Women |
|---|---|---|---|
|
62 |
$1,298 |
$1,440 |
$1,167 |
|
65 |
$1,563 |
$1,733 |
$1,410 |
|
67 |
$1,884 |
$2,094 |
$1,676 |
|
70 |
$2,038 |
$2,257 |
$1,816 |
|
75 |
$2,102 |
$2,228 |
$1,800 |
|
80 |
$1,940 |
$2,139 |
$1,750 |
|
85 |
$1,864 |
$2,034 |
$1,712 |
Source: Social Security Administration. Chart by author.
Note that as of November, the average monthly Social Security benefit was $1,925 -- or about $23,000 annually. Of course, if you've earned more than average in your working life, you'll receive more, and vice versa.
Also note that the table above starts at age 62 because that's the earliest age at which you can apply for your benefits. For each year you delay after that age, your benefits will increase (until age 70). And no matter when you start, you can expect nearly annual cost-of-living adjustments (COLAs).
For most folks, the best strategy is to wait until age 70 to claim your benefits. However, not everyone can do so, as some simply need that income sooner -- due, perhaps, to a job loss or poor health.
