For most retirees, Social Security represents more than just a payment deposited into their bank account once a month. It serves as a foundational puzzle piece to their financial well-being.
According to the Center on Budget and Policy Priorities, Social Security lifted more than 22 million people above the federal poverty line in 2023, some 16.3 million of whom were adults aged 65 and over. If the program didn't exist, the poverty rate for persons 65 and above would skyrocket from 10.1% (as of 2023) to an estimated 37.3%!
Furthermore, Gallup has been surveying retired Americans annually for the last 23 years to get a bead on just how important Social Security income is to their financial health. Consistently, 80% to 90% of retirees have noted their payout is a "major" or "minor" income source. In other words, it's income that most retired workers would struggle to make do without.
But just how much is the average retired worker receiving each month from Social Security? Probably a lot less than you might think...
Image source: Getty Images.
Here's how much the average retired worker takes home each month
Before spilling the beans on the precise amount the typical retired-worker beneficiary receives, it's important to understand the four variables that determine how much you'll be paid -- assuming you've earned the 40 lifetime work credits needed to qualify for a Social Security retired-worker benefit.
In no particular order, the four factors that directly impact your Social Security check are your:
- Work history
- Earnings history
- Full retirement age
- Claiming age
The first two items -- your work and earnings histories -- are linked at the hip. The Social Security Administration (SSA) will take into account your 35 highest-earning, inflation-adjusted years when calculating your monthly retired-worker benefit. If you've earned an above-average wage or salary throughout your lifetime (investment income doesn't count), there's a decent chance you'll receive an above-average Social Security payout during retirement.
The caveat to the above is that you'll also be penalized if you don't have at least 35 years of qualifying work history. For every year less than 35 worked, the SSA averages a $0 into your calculation.
Your full retirement age represents the age you become eligible to receive 100% of your monthly payout. Since it's based on the year you're born, it's not a factor you have any control over. Anyone born in or after 1960 (i.e., most of today's labor force) has a full retirement age of 67.
Lastly, claiming age plays a huge role in determining how much you'll receive each month. Although retired workers have the option of collecting their monthly benefit as early as age 62, they're financially incented to be patient. For every year a worker waits to claim their Social Security benefit, beginning at 62 and continuing until age 70, their monthly payout can grow by up to 8%.
With these four variables in mind, the average Social Security benefit for the nearly 52.6 million retired workers in April 2025 clocked in at $1,999.97 -- just pennies away from the psychologically important $2,000/month mark. This means the typical retiree is bringing home about $24,000 on an annualized basis. It's a relatively modest sum, but it's proved vital to pulling seniors out of poverty and helping retirees make ends meet.
The silver lining for future retirees is that there are a few simple things that can be done to potentially maximize what you'll receive from Social Security per month and, more importantly, during your lifetime.
1. Be patient and allow your monthly benefit to grow
Interestingly enough, one of the most effective ways to increase your retired-worker benefit is by doing absolutely nothing.
| Birth Year | Age 62 | Age 63 | Age 64 | Age 65 | Age 66 | Age 67 | Age 68 | Age 69 | Age 70 |
| 1943-1954 | 75% | 80% | 86.7% | 93.3% | 100% | 108% | 116% | 124% | 132% |
| 1955 | 74.2% | 79.2% | 85.6% | 92.2% | 98.9% | 106.7% | 114.7% | 122.7% | 130.7% |
| 1956 | 73.3% | 78.3% | 84.4% | 91.1% | 97.8% | 105.3% | 113.3% | 121.3% | 129.3% |
| 1957 | 72.5% | 77.5% | 83.3% | 90% | 96.7% | 104% | 112% | 120% | 128% |
| 1958 | 71.7% | 76.7% | 82.2% | 88.9% | 95.6% | 102.7% | 110.7% | 118.7% | 126.7% |
| 1959 | 70.8% | 75.8% | 81.1% | 87.8% | 94.4% | 101.3% | 109.3% | 117.3% | 125.3% |
| 1960 or later | 70% | 75% | 80% | 86.7% | 93.3% | 100% | 108% | 116% | 124% |
Data source: Social Security Administration.
As noted, waiting to claim your Social Security retired-worker benefit can increase your monthly benefit by up to 8% per year. The table above demonstrates this dynamic. For instance, waiting four or five years beyond your initial eligibility at age 62 can significantly reduce or eliminate a permanent monthly payout reduction from the equation.
Further, a comprehensive study by United Income ("The Retirement Solution Hiding in Plain Sight"), which extrapolated the claims of 20,000 retired workers, found that age 70 would have been the optimal claiming age for 57% of the retirees it analyzed. In comparison, just 8% of all claims at ages 62, 63, and 64 combined would have maximized lifetime income.
Statistically, playing the waiting game with Social Security benefits pays off more often than not.
2. Work for more than 35 years
Working more than 35 years is another way future retirees can beef up their monthly and lifetime Social Security benefits.
Typically, when someone enters the labor force, they will earn a lower wage/salary because they lack the skills and/or experience that merit higher pay. But by the time they've reached their 50s or 60s, they'll have the skills and experience that usually command a higher annual income.
Even though the SSA adjusts earned income for inflation, working beyond 35 years will allow future retirees to remove their lower-earning years from the SSA's calculation and beef up their monthly benefit.
Image source: Getty Images.
3. Don't forget about Social Security's little-known do-over clause
The third way select current and future retired workers can maximize their monthly Social Security check is by leaning on the program's under-the-radar do-over clause: Form SSA-521 (Request for Withdrawal of Application).
SSA-521 allows retirees to undo their benefit claim with approval from the SSA. In such a case, their payout would revert to growing over time, up to 8% per year, until age 70.
This Social Security mulligan can come in particularly handy if you regret an early claim or your work situation drastically changes in the months following your claim. For example, if you filed early because you had no income but happened to land a well-paying job just months later, you can choose to file SSA-521 and undo your claim.
As you might imagine, there are some restrictions that come with this little-known do-over clause:
- You can only file SSA-521 once, so there'll be no do-overs following your second claim.
- You'll need to file SSA-521 no later than 12 months after your SSA benefit approval. If it's been longer than a year for current retirees, this mulligan isn't an option for you.
- You'll have to repay every cent you've received from Social Security, which includes any benefits spouses or children may have received that were based on your earnings history.
Having this mulligan in your back pocket gives select current and most future retirees the flexibility to beef up their monthly and/or lifetime payout.
