How much does the average person get in social security

The Social Security Administration (SSA) provides a wide range of programs designed to provide financial support for Americans. However it is the agency’s retirement benefits that are by far the most widely utilised, and which provide a “replacement income for qualified retirees and their families.”

In July 2022 more than 70 million people received some form of support from the SSA, of which more than 50 million claimed retirement benefits, a whopping 71.4 percent.

Figures from the SSA state that the current average monthly benefit for a retired worker is $1,621.27.

Spouses of retired workers get $836.19 on average, while children of retired workers typically get $786.70.

Social Security retirement is the main source of income for elderly Americans

The retirement support provided by Social Security was designed to ensure that elderly people are able to cover the cost of essentials and it now plays a vital role in the finances of older Americans. Data published by the SSA last year found that roughly nine out of ten people aged 65 or older in the United States were receiving a Social Security benefit.

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Across the country, around 30 percent of the total income of the elderly comes from Social Security benefits. Furthermore, 37 percent of men and 42 percent of women get a majority of their income from Social Security programmes.

What are the future prospects for the Social Security retirement benefits?

Social Security is able to provide vital support for the vast majority of elderly Americans because it is paid for with monthly contributions from nearly all adults in work in the United States. There are dedicated trust funds to cover the costs, but a change in demographics in recent decades could threaten the long-term viability of the programmes.

Estimates now suggest that, using the current model, the trust funds will only be able to pay the full benefits entitlements until 2034. After that point recipients will receive just 75 percent of their benefits, a huge decrease for elderly Americans who are relying on the support for their retirement.

Millions depend on #SocialSecurity, which was signed into law 87 years ago this week, to make ends meet. Congress needs to do right by families and strengthen the program—not slash it. I'm pushing for the Social Security 2100 Act, which shores up the program for years to come.

— Rep. Katie Porter (@RepKatiePorter) August 15, 2022

Legislation proposed by Rep. John Larson, Social Security 2100: A Sacred Trust, aims the address the imbalance and ensure that Social Security will be able to remain for decades to come. He has called for the funding model to be restructured, removing the clause that lowers the rate of taxation for high earners.

A number of Republican candidates for the midterm elections have toyed with the idea of cutting access to Social Security. At the start of August, Senator Ron Johnsoin said that Social Security and Medicare should no longer be considered “mandatory spending.”

Ron Johnson’s suggestion to cut Social Security would put the benefits of nearly 1 million retirees in Wisconsin at risk.

He has no respect for elderly Wisconsinites. He has no respect for anyone – except, of course, the special interest donors who line his pockets.

— Mandela Barnes (@TheOtherMandela) August 23, 2022

His comments were criticised by many and he was forced to deny that he was threatening the support.

Americans who are looking to retire should save and invest diligently to ensure that they have enough for their post-work life. They can also take some comfort in knowing that they will likely receive monthly income from the federal government. 

The U.S. Social Security Administration (SSA) expects to distribute over $1 trillion to retirees each year. Beneficiaries can receive an amount based on a percentage of their pre-retirement income as soon as they turn 62.

As of October 2021 (the most recently available month), the average Social Security check benefit for retired workers was $1,562.66 per month. However, that might not be enough to cover basic living costs, so it’s important to learn ways you can receive more.

Key Takeaways

• Key factors in determining your benefit amount are your past earnings and how long you can wait until you collect.
• Due to lower earnings in the labor market, women and racial minorities often have lower benefit payments.
• The longer you wait to draw your social security, the more you will receive. Spouses receive an amount based on when you began drawing benefits.

Below, we’ll examine how Social Security payments are calculated and the factors that impact what a retiree can receive.

Calculating Social Security Payments

Two key factors impact what you could earn from Social Security: 

• How much you made in your pre-retirement life; even earnings after retiring from a job can lead to an increased Social Security benefit.
• How long you are willing or able to wait before collecting 

Social Security benefits are based on lifetime earnings, which are then adjusted to account for changes in average wages since the money was first earned. Then your average indexed monthly earnings are calculated using your 35 highest-earning years. From this figure, comes your basic benefit.

It’s impossible to predict exactly how much you’ll receive from Social Security when you retire because the government can adjust the level of benefits. However, if you are curious about how much you might receive from Social Security, the government offers a quick calculator that will give you a rough estimate. Results are based on your current earnings and birth date. You can view the results in today’s dollars or inflated future dollars.

Note

For 2021, the SSA expects to pay a maximum benefit of $3,895 per month to retirees who delayed their benefits until age 70 and who earned maximum taxable earnings since age 22. 

For example, based on the SSA’s calculator, a person who plans to retire at age 70 in January 2025 after earning roughly $100,000 per year (during their 35 highest-earning years) could receive an estimated monthly benefit of $3,121.

On the other hand, someone who plans to retire at age 62 in January 2025, after earning $100,000 per year in the same time frame, would potentially collect $1,760 per month. If that 62-year-old earned $75,000 over the 35 years instead, their monthly benefit could be $1,422.

Women and Racial Minorities Often Earn Less

Unfortunately, women generally receive a lower monthly benefit than men. That is a product of income level, as women have historically earned less than men. In 2019, women age 65 and older received an average annual Social Security income of $13,505, compared to $17,374 for men. That’s about $1,125 per month for women and about $1,447 per month for men. The SSA notes that these lower benefits correlate to lower lifetime earnings and more part-time work. 

Note

Keep in mind that the further away you are from retirement, the less accurate the calculations are likely to be.

Women also tend to be more reliant on Social Security. The SSA notes that women at age 65 are expected to live about 21 additional years, compared to 19 years for men. Women reportedly represent 55.3% of all Social Security beneficiaries age 62 or older and about 64% of beneficiaries age 85 and above.

Meanwhile, Black men aged 65 and older received an average annual Social Security benefit of about $14,409 in 2019, compared to Black women, who received about $12,806. That’s about $1,200 per month for men and about $1,067 per month for women. Again, that is due to lower lifetime incomes. 

Despite these differences in benefit payments, it is worth noting that Social Security is designed to be progressive. Social Security benefits to lower-income earners represent a higher percentage of their pre-retirement income.

It Pays to Wait

The longer you wait to collect benefits, the higher your benefit will be based on the SSA's payment structure. So if you have enough retirement savings, you may be able to go several years before you start receiving Social Security benefits. That can ultimately result in more money. 

You can start receiving Social Security benefits as early as age 62. However, if you collect at that age, you’ll only receive a percentage of your maximum retirement benefit. For example, if you were born in 1960 or later and retire at age 62, you will receive only 70% of the maximum benefit. If you wait until age 65, you’ll get 86.7%, and if you begin collecting at age 67, you’ll get the full benefit. Benefits for spouses range from 32.5% to 50%, depending on the year of collection.

Note

If you were born between 1943 and 1954 and are willing to wait until age 70 to retire, you can receive up to 132% of the full retirement benefit.

It’s worth noting, for those not yet near retirement age, that Social Security benefits are expected to be available to be paid in full through 2037. However, after that, there might only be enough funds to pay 76% of scheduled benefits. The Social Security Board of Trustees believes that increases in taxes could help prevent a lack of Social Security benefits for retirees. 

The Bottom Line 

It’s hard to know precisely what you’ll earn from Social Security until you begin collecting payments. However, you can work to maximize your payments by making as much as you can in your pre-retirement years and delaying collection as long as possible. While the average Social Security benefit was $1,562.66 per month in 2021, it is possible to earn more than twice that amount each month by combining higher lifetime earnings and patience.

Frequently Asked Questions (FAQs)

How much is the average Social Security disability check?

The average monthly disability payment was around $1,300 in November 2021. That's about $200 more than the average monthly disability payment in November 2011.

What is the maximum Social Security benefit amount?

The maximum Social Security benefit payment varies, depending on factors like the age at which you retire, the amount that you worked during your lifetime, and the inflation in a given year. For 2022, the maximum benefit for those who retire at age 70 is $4,194.