Additional Coverage:
- Here’s the Average Social Security Benefit of 65-Year-Old Americans (How Do You Compare?) (financebuzz.com)
Your Retirement Lifeline: Understanding Your Social Security Benefits
Whether your Social Security check comes in above or below the national average for retired workers, currently $2,009.50, this vital income stream plays a crucial role in securing a comfortable and stress-free retirement. It complements your personal savings, providing a consistent financial foundation once your working days are behind you. But how much can you truly expect, and how does your potential benefit stack up against your peers?
Below, we’ll delve into the average Social Security benefit for 65-year-olds, explain the mechanics of Social Security, and offer practical advice if your retirement savings need a boost.
The Average Social Security Check for 65-Year-Olds
Based on the most recent available data, the average Social Security benefit for Americans aged 65 stands at $1,612.90. However, this figure shows a notable disparity between genders. A 65-year-old man, on average, receives $1,781.92, while a 65-year-old woman receives $1,458.48.
The Overall Average Social Security Check
Across all ages and genders, the average Social Security benefit for retired workers is $2,009.50.
You might be wondering about the difference between the overall average and the average for those in their mid-60s. The age at which you begin claiming Social Security benefits significantly impacts the amount you receive.
While benefits can be claimed as early as age 62, those who do so before reaching their full retirement age (FRA) will see their checks permanently reduced. Given that the FRA for anyone born in 1960 or later is 67, individuals claiming benefits at age 65 are receiving reduced amounts, which explains the lower average for this age group.
What’s the Maximum Social Security Benefit?
Social Security benefits are calculated based on your earnings history, your average income over your career, and the age you choose to claim benefits.
There’s an annual cap on the income subject to Social Security tax (for 2025, this is $176,100). If you consistently earned the maximum taxable income starting at age 22 and postponed claiming benefits until age 70, your maximum monthly benefit could be as high as $5,108. However, if you claimed benefits at the earliest possible age of 62, that maximum benefit drops to $2,831.
How Many People Claim Social Security?
The Social Security Administration (SSA) reports that 67,219,000 individuals receive Social Security benefits. This figure encompasses retired workers, as well as spouses and children who qualify based on a partner’s or parent’s earnings history. Children of deceased workers, along with eligible widows, widowers, or parents, may also receive Social Security benefits.
Estimating Your Future Benefits
The Social Security Administration offers retirement calculators to help you estimate your benefits. These tools consider your earnings history, years in the workforce, and your anticipated retirement age (specifically, how many months before or after your FRA you plan to apply). For a quicker, albeit less precise, estimate, you can use the SSA’s quick calculator by inputting your birthdate, annual income, and estimated retirement age.
What If Your Estimated Check Is Below Average?
If your calculations suggest a below-average Social Security benefit, you’re not alone, and it’s not too late to take action. Regardless of your proximity to retirement, there’s always an opportunity to enhance your savings and prepare for life after your career. Consider these tips:
- Explore Part-Time Side Gigs: Earning additional income is often the fastest way to bolster your savings. Simple activities like ridesharing or selling handmade goods online can quickly boost your retirement fund, especially if you funnel the proceeds into a high-yield savings account.
- Maximize Retirement Savings Contributions: As you approach retirement, you’re permitted to contribute more to retirement accounts like a 401(k) or Roth IRA. If you’re not already maximizing these contributions, re-evaluate your budget to free up funds for increased savings.
The Bottom Line
The impact of your Social Security benefit on your retirement plan cannot be overstated, regardless of its size. If you haven’t yet estimated your benefits, dedicate some time this month to do so.
Should the calculations seem daunting, don’t hesitate to consult a financial advisor or retirement planner. They can help you maximize your benefits and craft a secure financial plan for your future.
General Money Tips for Everyone
No matter your current financial standing, there are always opportunities to improve your finances and grow your wealth. Here’s a quick guide to get you started today:
- Increase Your Income: If your budget feels tight, explore various avenues to supplement your income. Consider a side hustle that complements your full-time job or investigate legitimate ways to boost your bank account.
- Grow Your Savings: Time and compound interest are powerful tools for wealth accumulation. Begin by understanding your current financial position to develop an actionable plan.
Working with a professional can be a smart move to ensure you don’t outlive your retirement savings.
- Seize Opportunities: Maximize your senior benefits by taking advantage of all available deals, discounts, and money-saving opportunities.
For car owners, ensuring you have the best price on auto insurance could save you hundreds. Conversely, be vigilant about avoiding money-wasting traps that can quietly erode your bank account.