Is Your Social Security Check Above Average, Below Average or Right in the Middle?
All Social Security checks are not created equal. And there are some very good reasons for that, but many people have no idea how the amount they receive each month stacks up compared to friends or neighbors.
You may be curious: Are your earnings at the top of the scale, in the middle or near the bottom? First, let’s look at the factors determining how much your check is worth. Then we’ll explore the average amount people receive for Social Security.
What Impacts the Amount of Your Social Security Check?
Americans who have worked receive monthly payments when they reach retirement age after paying into the Social Security system throughout their careers. It’s a way to look out for seniors as they age and stop working.
The government tiers Social Security payouts based on four factors:
· How many years you worked and paid Social Security taxes
· Your income during the years when you paid Social Security
· Your FRA, or full retirement age
· Age you decide to get your benefits
You can tap into your Social Security benefits as early as age 62. However, you won’t receive as much in your check if you take payments early and will receive them for longer. If you wait until you’re 67 to take Social Security, your checks will be nearly a third higher. And if you put off benefits until age 70, your payouts will be worth even more.
Though the Social Security Administration (SSA) provides benefits for other people, including those with disabilities, the vast majority of its payouts (nearly three-quarters) go to retirees.
What Is the Average Social Security Payment?
It varies by age. Here’s the breakdown.
Average Social Security Benefit for Retirees Age 62
So how does your check stack up to others? Looking at the SSA’s most recent numbers, the average benefit for someone who opts to take early Social Security at age 62 is $1,274.87.
Average Social Security Benefit for Retirees Age 66
By contrast, if you wait just a few years, your check could go up. The average SSA benefit paid to retirees age 66 is $1,719.85.
Average Social Security Benefit for Retirees Age 71
By age 71, your Social Security payouts will be higher, at an average $1,946.34.
How Does Your SSA Payout Compare?
Of course, your payment will vary based on your income during your career, too. The SSA looks at your 35 highest-earning years throughout your career and averages them out to get your benefit number. And if you retire early, those working years until age 67 count as a 0 for income, which can also impact your benefit number.
The majority of people begin taking their checks earlier than 67, according to data from the SSA. So not everyone is waiting to maximize their benefits.
If you’re uncertain when you should retire or how to set yourself up most favorably for collecting Social Security, reach out to Jay today. He can help you navigate your SSA questions.
