How Much Social Security Will I Get?

How Much Social Security Will I Get?

The total Social Security benefit payment varies by individual, as it is based on your personal situation. Four key factors described below affect how your monthly Social Security benefit is calculated: your birth year, claiming age, earnings history, and work history. In 2023, the estimated average Social Security payment for all retired workers is $1,827 per month. Later in the article, we’ll cover how retirees can boost their monthly benefits (up to $4,710).

Factors That Impact How Much Social Security You Will Get

Birth Year

At age 62, you can begin receiving a portion of your Social Security benefit. However, to be paid 100 percent of the benefit for which you qualify, you must reach your full retirement age, which is based on the year you were born. Currently, the full retirement age for individuals born between 1943 and 1954 is 66. Individuals born between 1955 and 1959 reach 100 percent after 66 years plus a specific number of months. For example, if you were born in 1957, your full retirement age is 66 and six months. For those born in 1960 and later, the full retirement age and 100 percent eligibility is at age 67.

Claiming Age

When you decide to claim your Social Security benefit greatly impacts how much you’ll receive. As mentioned above, you can begin claiming Social Security as early as age 62. However, you will receive a reduced portion of your benefit, not 100 percent. If you choose to wait until your full retirement age to claim Social Security benefits, you will receive 100 percent. Delaying Your Social Security benefit until age 70, the age when your benefits peak, will increase your monthly payment above 100 percent.

Earnings History

The more you have earned over the lifetime of your career, the more you have paid into the U.S. Federal payroll tax, known as the Federal Insurance Contributions Act (FICA). FICA helps fund Social Security and Medicare programs.

Work History

Your average Social Security payment is based upon your highest-earning 35 years of work history. Year(s) not spent in the workforce will count as a zero, thus affecting your average payment. Examples of a “zero year” include taking time to raise a family, spouse or parent caregiving, or being unemployed.

Expert Insights

From Jason Milz, Medicare and Social Security Expert

Social Security does not account for individual work history where non-covered or foreign pensions may have been in place. It is the responsibility of the beneficiary to bring this up with the SSA to be calculated into their benefit. This is a major area for overpayments and you will be responsible for repaying to the government.

What Is the Average Social Security Payment?

Average Social Security Payment

According to the Social Security Administration (SSA), the average estimated monthly Social Security payment in 2024 after the 3.2 percent cost-of-living (COLA) increase is*:

*Data for this table is based on the 2024 Social Security Fact Sheet2

Maximum Social Security Payment

Making (or exceeding) Social Security’s annual maximum earnings ($168,600 in 2024) is challenging for most people. High-earning individuals are eligible for a higher monthly Social Security payment if they have met the SSA’s maximum taxable earnings each year for at least 35 years of work. The SSA reports the maximum monthly Social Security benefit an individual can receive in 2024 is:3

Jeff Hoyt, Editor-in-Chief at SeniorLiving.org, and Mary Beth Franklin, Certified Financial Planner and Contributing Editor of InvestmentNews, take a deep dive into maximizing your Social Security payout. Watch the video below for more information.

Ways to Estimate Your Social Security Benefit for Retirement

With so many varying factors, estimating your Social Security benefit can be a challenging task. Take advantage of these four useful ways to calculate the most accurate retirement benefit estimates:

1. Create a free my Social Security account. Setting up an account with the Social Security Administration gives you access to personalized estimates based on your earnings history on file. For a step-by-step tutorial on setting up your account, visit our Social Security account guide.
2. Call the Social Security Administration. If you don’t have access to a computer or simply prefer to speak to someone over the phone to receive a benefit estimate, contact Social Security’s national toll-free number: 1-800-772-1213. If you are deaf or hard of hearing, call their toll-free TTY number: 1-800-325-0778.
3. Use the Social Security Quick Calculator. For a basic calculation pulled from your current age and earning history, our Social Security calculator provides a rough estimate. Note: these calculators do not access your official record (as with the my Social Security account).
4. Request an up-to-date Social Security statement. For a hard copy of your Social Security information on file, complete the SSA-7004 form. You’ll receive a mailed statement of your earning history, an estimate of how much you have paid in Social Security taxes, and an estimate of your Social Security benefits.

Expert Insights

From Jason Milz, Medicare and Social Security Expert

When contacting Social Security, be sure to understand the SSA staff is not allowed to give out advice. This has led many individuals to make an incorrect claiming decision which analysts say costs the average household over $111,000 over their lifetime. It is always recommended to utilize a Registered Social Security Analyst (RSSA) prior to claiming benefits.

Things to Keep in Mind When Estimating How Much Social Security You Will Get

A valuable part of your retirement planning strategy should include estimating how much Social Security you will get. Older adults living solely on Social Security may face financial strain. We spoke with Andrew Meadows, Senior VP of HR, Brand, and Culture at Ubiquity Retirement + Savings, about the gap between Social Security benefits and overall financial retirement needs. “One of the biggest sticker shocks around Social Security is that it’s likely not enough for you to pay your bills once you retire,” notes Meadows. “The idea around retirement started with the three-legged stool: Social Security, pensions, and personal savings (like a 401(k)). Understanding how Social Security fits into your financial health is a powerful way to be prepared for when retirement comes up for you.”

>> Related Reading: Does Social Security Pay for Assisted Living?

These key factors can impact your estimated Social Security benefits, so keep them in mind as you work through your calculations:

1. There is a cap on earnings known as the maximum taxable earnings limit. The cap on Social Security taxation for 2024 is $160,200.4 If the cap has been met, there will not be any additional Social Security tax deducted from your paycheck.
2. Estimating Social Security benefits does not provide a concrete figure. The number calculated is simply an estimate. You won’t know the exact figure until an official claim has been placed.
3. A COLA is updated annually. The Social Security COLA adjustment for 2024 is 8.7 percent.5
4. Increases (or decreases) in your earned income will affect your official benefits.
5. If you have worked less than a total of 35 years, your benefits will be reduced as years out of the workforce are calculated as “zero” years.
6. The Social Security Administration's governing laws and regulations on Social Security can change. Head over to our most recent article on Social Security, Medicare, and retirement changes and keep coming back to SeniorLiving.org for future updates.