Few U.S. social programs provide as valuable a financial lifeline as Social Security retirement benefits. According to a recent study by The Senior Citizens League, roughly 21.8 million retirees rely on Social Security for all of their income.
Given its importance, it's normal for people to wonder how much they can expect in Social Security benefits. Although the amounts vary widely, having an idea of the average benefits can help with retirement finance planning.
The average retired-worker benefit for someone age 70 is currently $2,037.54. The benefits for men and women differ, at $2,257.32 and $1,815.55, respectively.
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What determines how much you receive in Social Security?
Your monthly Social Security benefit depends on two main factors: Your lifetime earnings, and when you claim benefits.
Social Security takes the 35 years when your earnings were the highest, adjusts them to put them into today's dollar value, and then applies a formula that comes up with your monthly benefit. This amount is considered your primary insurance amount (PIA), and you're eligible to receive it once you reach your full retirement age (FRA).
By delaying benefits past your FRA, you can receive a monthly increase of 2/3 of 1%, or 8% annually. That's part of why the average Social Security benefit at age 70 is higher than it is at younger ages (along with annual cost-of-living adjustments).
If you're currently receiving Social Security benefits, there's typically nothing you can do to increase how much you receive. However, if you're still working, the surest way to ensure a higher benefit amount is by increasing your income (which is, admittedly, easier said than done).
