Understanding Social Security Benefits: What You Need to Know
Social Security is a vital program that helps many people in retirement. While it provides consistent income, many do not realize that the program typically increases payments each year through cost-of-living adjustments (COLAs). Recently, a 2.5% increase for 2025 was announced to help keep up with inflation.
A common misconception involves the amount received from Social Security. For future retirees, the average monthly benefit as of August was $1,920, which totals about $23,000 each year. This amount may not be sufficient for a comfortable lifestyle.
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How Much Can You Expect from Social Security?
If you want to know how much you’ll receive from Social Security, consider creating an account at the Social Security Administration’s website. This online platform provides updated estimates of your future benefits.
The table below outlines the average monthly benefits for different ages, as of the end of last year:
|
Age |
Average for All Beneficiaries |
Average for Men |
Average for Women |
|---|---|---|---|
|
62 |
$1,298 |
$1,440 |
$1,167 |
|
65 |
$1,563 |
$1,733 |
$1,410 |
|
67 |
$1,884 |
$2,094 |
$1,676 |
|
70 |
$2,038 |
$2,257 |
$1,816 |
|
75 |
$2,102 |
$2,228 |
$1,800 |
|
80 |
$1,940 |
$2,139 |
$1,750 |
|
85 |
$1,864 |
$2,034 |
$1,712 |
Source: Social Security Administration.
Strategies to Increase Your Benefits
The averages presented above may be underwhelming, especially for women, who tend to earn less than men historically. However, there are strategies to potentially increase your benefits. One effective method is to wait until age 70 to claim your benefits, if financially feasible.
Additionally, working with a spouse can lead to greater benefits. For example, one partner might choose to delay benefits until age 70, while the other can begin their payments earlier. Gaining a better understanding of Social Security can maximize your benefits significantly.
The $22,924 Social Security Bonus Often Ignored
Many Americans find themselves behind on retirement savings. Uncovering a few lesser-known “Social Security secrets” could help boost your retirement income. For instance, implementing a simple trick might yield as much as $22,924 more each year. By learning how to maximize Social Security benefits, you could retire with confidence and peace of mind. Click here to find out more about these strategies.
View the “Social Security secrets” »
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