Many individuals look forward to retirement, whether it’s still years away or just around the corner. Regardless of your timeline, it’s wise to have a rough estimate of your anticipated Social Security income to help plan additional income sources for a comfortable retirement.

Here are some key points to understand regarding Social Security benefits:

• The average monthly retirement benefit from Social Security was $1,924 as of October, translating to roughly $23,000 annually.
• You may start receiving benefits at age 62, albeit at a reduced rate (though you’ll receive more payments). Alternatively, if you postpone until age 70, your benefits will increase by about 8% for each year past your full retirement age (which is 66 or 67 for most). For most, age 70 is the optimal time to claim benefits.
• There are various strategies to enhance your future benefits, including increasing your income.
• Social Security benefits are adjusted every year for inflation through cost-of-living adjustments (COLAs).

Let’s examine how the average benefits have evolved over the years:

Data source: Social Security Administration, 2023 Annual Statistical Supplement. *As of January 2024. **As of October 2024.

It’s also beneficial to create a My Social Security account on the Social Security Administration (SSA) website to get an approximation of your expected benefits based on your earnings.

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The $22,924 Social Security bonus that many retirees miss

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