As you approach retirement, you may be wondering how much income you can expect from Social Security. It's a good question to ask even if you're still decades from retiring but are starting to develop a solid retirement plan. You might also wonder what the average retiree is receiving right now.
For the most useful information, visit the Social Security Administration (SSA) website and set up a my Social Security account. Once you do, you can check anytime for an estimate of your future benefits, based on your earnings history.
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Here's a little context: The overall average monthly Social Security retirement benefit was $1,922 as of September. That's about $23,000 annually -- for this year. Benefits increase over time with cost-of-living adjustments (COLAs) that occur almost every year.
If you're thinking you might retire in your mid-60s and you're wondering what Social Security benefits might look like then, as of the end of 2023, the average benefit for a 65-year-old was $1,563, or about $18,750 for the year.
What to do
At this point, you may be a little depressed, wondering if you should ever retire. Take a deep breath, and consider these points:
- You can take certain actions to increase your future Social Security benefits. For example, you can work on boosting your income. You might also delay claiming your benefits, since the longer you wait, the bigger they get (up to age 70). For most folks, the best strategy is to wait until 70.
- Another powerful move is delaying your retirement by a few years. Doing so allows you to save and invest more, and it means that your nest egg doesn't have to support you for as many years.
- It's smart to set up multiple income streams for your retirement. These can include income from dividend-paying stocks, rent checks from properties you own and lease out, interest from bonds, income from one or more annuities, and many other possibilities.
