According to the latest estimates, the U.S. population is about 340 million. As of the end of 2024, more than 51.7 million Americans received Social Security retirement benefits, representing over 15% of the population.
So, needless to say, Social Security plays a pivotal role in the U.S. retirement system and economy. And given its importance in many people's retirement finances, it's helpful to get a sense of how much you could be receiving.
The average monthly benefit for Social Security recipients at the end of 2024 was $1,925. For recipients aged 69, the average monthly benefit is slightly higher at $1,945.
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What influences how much your monthly Social Security benefit is?
Your monthly benefit depends on two major things: your lifetime earnings and when you claim benefits.
Regarding your lifetime earnings, Social Security calculates your benefits using the 35 years when your income was the highest. It adjusts each year's earnings to put in today's dollar value (called indexing) and then averages them to determine your average indexed monthly earnings, which is used to calculate your benefit amount.
Regarding when you claim, monthly benefits are either reduced or increased, depending on when you claim relative to your full retirement age. This is the age at which you're eligible to receive your primary insurance amount, which you can think of as your baseline monthly benefit.
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Claiming before your full retirement age reduces monthly benefits by 5/9 of 1% each month for the first 36 months. Any additional month further reduces benefits by 5/12 of 1%, with 62 being the earliest age at which you can claim.
Delaying benefits past your full retirement age will increase them by 2/3 of 1% monthly until you turn 70. After that, benefits no longer increase, so that's realistically the latest anyone should consider claiming Social Security.
