Open Access
Social Security is the system Americans pay into during their active working years that guarantees an income stream during retirement. The Social Security system also makes payments to disabled workers, survivors of deceased workers, and, in some cases, the family members of retirees. According to the Social Security Administration (SSA), around 71.6 million Americans received Social Security benefits in 2023 with an 8.1% increase in new beneficiaries.
Payments are made monthly, and amounts are determined by a formula designed to account for inflation. The formula includes regular cost-of-living adjustments based on the Consumer Price Index.
Key Insights
The average Social Security benefit payment in 2024 was $1,783. The average payment for retired workers receiving Social Security payments was $1,920.
↓ Jump to insight
As of March 2024, over 68 million Americans received Social Security benefit payments (including retirement, survivor, and disability insurance).
↓ Jump to insight
37% of men and 42% of women aged 65 or older get at least 50% of their income from Social Security
↓ Jump to insight
In 2024, the maximum monthly Social Security benefit payment for an individual retiring at the normal retirement age of 67 is $3,822.
↓ Jump to insight
The worker-to-beneficiary ratio for Social Security payments is projected to drop from 2.7 in 2023 to 2.4 in 2035.
↓ Jump to insight
General Social Security Payment Statistics
Virtually all Americans with work-related earnings are subject to paying Social Security taxes. The Social Security tax rate is set at 6.2% each for employers and employees (self-employed individuals earning more than $400 pay 12.4% of earnings). In 2024, the maximum earnings subject to Social Security taxes is $168,600; earnings beyond this amount are exempt.
To be eligible to receive Social Security retirement benefits, an individual must earn a minimum of 40 Social Security credits throughout their lifetime. Credits are earned based on the amount of earnings in a given year.
As of 2024, individuals receive one credit for every $1,730 in taxable earnings, up to a maximum of four credits (meaning that if you earned at least $6,920 for the year, you would receive all four credits).
Individuals can earn Delayed Retirement Credits (DRCs) by delaying Social Security benefits beyond their Full Retirement Age (FRA). These credits increase monthly payments, providing higher benefits for those who wait to claim, up to age 70 or older.
In 2022, 55% of those receiving Social Security benefits were women. The average monthly benefit amount for women receiving Social Security was $1,527.94. The average monthly benefit for men was $1,881.20.
In the same year, just under 76% of Social Security beneficiaries were white, while slightly over 11% were Black. Social Security beneficiaries identifying as white received an average of $1,775.24 monthly, while those identifying as Black received $1,424.70 per month.
Older Adults Social Security Benefits
According to SSA, among beneficiaries aged 65 or older:
- 37% of men and 42% of women get at least 50% of their income from Social Security.
- 12% of men and 15% of women rely on Social Security for 90% or more of their income.
- 9 out of 10 older people received Social Security payment benefits in 2023.
Social Security Benefits by Work Status
Retired workers and their dependents made up 77.8% of total Social Security benefits paid in 2023, compared to 11% for disabled workers and 11.2% for survivors.
- In 2023, 7.2 million disabled workers received an average monthly benefit of $1,538, and 1.1 million dependents of disabled workers received benefits.
- 5.8 million survivors (spouses, children, or dependents) received an average of $1,508 per month.
How much is the average Social Security payment?
Social Security includes four types of monthly benefits, summarized in the table below.
Note that the total number of recipients of Social Security benefits as of 2024 was 68,000,000. The benefits paid to eligible spouses and children are also classified within the other three categories (retirement benefits, survivor benefits, and disability insurance).
As of 2024, the average monthly Social Security benefit payment among all benefit groups was $1,783. The average payment for different benefit groups is broken down below.
Maximum Social Security Retirement Benefit
The maximum monthly Social Security retirement benefit varies based on the age you begin receiving benefits. In 2024, beneficiaries were given:
- Retirement at age 62 (earliest age): $2,710 per month
- Retirement at full retirement age: $3,822 per month
- Retirement at age 70 (latest age): $4,873 per month
How are Social Security payments calculated?
Social Security retirement benefits are calculated using a formula based on an individual’s earnings during their years of employment. The first step is to adjust those earnings to account for inflation, which produces a dollar figure known as the Average Indexed Monthly Earnings (AIME).
Calculating an individual’s AIME involves taking the earnings from their 35 highest-earning years and indexing them for inflation.
For example, the indexing factor for the year 2000 was 1.9840. If an individual earned $50,000 that year, those earnings would be multiplied by the indexing factor for an adjusted total of $99,200.
That same calculation would be performed for each of that individual’s 35 highest earning years. The adjusted totals would be added together and then divided by 35 (the number of years) and then by 12 (the number of months in each year) to come up with their AIME.
The next step involves three separate calculations using the AIME These calculations are performed using “bend points” that change depending on the year an individual becomes eligible for Social Security. For 2024, the bend point calculations are as follows:
- Ninety percent of the first $1,174 of AIME
- Thirty-two percent of the portion of AIME between $1,174 and $7,078
- Fifteen percent of the portion of AIME over $7,078
An individual’s Primary Insurance Amount (PIA) is the sum of those three calculations. For example, assume that the individual referenced above had adjusted earnings of $99,200 for each of their 35 highest earning years. That would equate to a total of $3,472,000 in earnings. Divided by 35 years and then by 12 months, that leaves an AIME of $8,266 (this number is always rounded down to the nearest dollar).
Performing the bend point calculations would lead to the following:
- 90% of $1,174 = $1,056.60
- 32% of $5,904 = $1,889.28
- 15% of $1,188 = $178.20
The sum of these three numbers, $3,124, would be this individual’s PIA. The PIA is the monthly amount that an individual would receive, provided they retired at normal retirement age (currently 67 for anyone born after 1960). Retiring prior to the normal retirement age reduces benefit amounts while retiring after that age increases benefits.
There is a limit to monthly Social Security benefits for those who have earned at or above maximum table earnings. If a worker retired at full retirement age in 2024, their maximum benefit would be $3,822. If they retire at age 62 in 2024, the maximum benefit drops to $2,710.
If they retire at age 70 in 2024, the maximum benefit would be $4,873.
Social Security Benefits for Senior Living Coverage
In 2020, long-term care (LTC) spending in the U.S. totaled $475.1 billion, with 72.3% funded by public sources like Medicaid (42.1%) and Medicare (18.2%). Private funding covered 27.7%, including 13.5% of out-of-pocket costs.
Social Security indirectly supports senior living through “spend-through” contributions. Many seniors use their Social Security benefits to offset out-of-pocket costs for Medicaid-funded LTC services, accounting for nearly half of the $45.3 billion in such expenses.
But, Social Security alone isn’t sufficient enough. Many individuals turn to additional financial strategies, such as setting up Individual Retirement Accounts like Gold IRAs or Crypto IRAs, as part of their retirement planning. Certified Financial Planners (CFPs) often recommend these options to help seniors secure their financial future and manage the high costs associated with long-term care.
Social Security Benefits vs. Cost of Living Adjustment
Every year, the SSA announces a new Cost of Living Adjustment (COLA) percentage. This is determined based on annual inflation data from the U.S. Bureau of Labor Statistics. If inflation is high, the COLA percentage also increases.
For 2025, SSA announced Social Security benefits will increase to 2.5 percent. So, if a Social Security recipient received a monthly benefit of $1,500 in 2024, the monthly benefit would increase by $37.50 in 2025.
Here’s a look into adjustments and how they have benefited recipients over the years.
Social Security payments through the years
Due to the calculations referenced above, Social Security checks tend to rise each year.
The average Social Security payment in 2024 among all benefit groups (retirees, survivors, disabled workers with spouses/children) was $1,783. The average benefit for retired workers was $1,920.48.
Below are the average benefits for all Social Security recipients and retired workers over the past 20 years.
Distribution of Social Security Benefits by Beneficiary Type in 2024
Future Projections
The aging U.S. population will significantly affect Social Security in the upcoming years. According to SSA, the number of Americans aged 65+ will increase to 77 million, and their share of the population will rise to 23% by 2035. However, the worker-to-beneficiary ratio is projected to drop from 2.7 in 2023 to 2.4 in 2035.
77% of older adults currently rely on SSA to cover necessary expenses. According to a survey of non-retirees, 47% of baby boomers expect to completely rely on Social Security benefits after retirement in the coming years. Yet, the Old-Age and Survivors Insurance (OASI) Trust Fund only has sufficient reserves to pay full benefits until 2033.
FAQs
How many Americans receive Social Security benefits?
As of 2024, more than 68 million Americans are or will receive Social Security benefits, including retirement benefits, survivor benefits, and disability insurance. More than 51 million individuals received retirement benefits.
How much does the average person pay into Social Security?
Employers and employees each pay 6.2% of an individual's earnings as Social Security taxes. For 2025, the Social Security taxable maximum is $176,100, up from $168,600 in 2024.
The Social Security Administration calculated the national average wage at $66,621.80 in 2023. An individual earning the average wage in 2023 would have to pay $4,130.15 in Social Security taxes, and their employer would have paid the same.
How much Social Security will I get if I retire at 65?
If you retire at 65, you could receive around $1,726 per month or $20,714 per year, based on the average Social Security check. But retiring at 65 will give you reduced benefits than what you would receive at your Full Retirement Age (FRA).
The reduction depends on your FRA:
- If your FRA is 66, retiring at 65 reduces your benefits by 13.3%.
- If your FRA is 67, retiring at 65 reduces your benefits by 10%.
Your Social Security payments are also influenced by your Primary Insurance Amount (PIA), which is calculated using your 35 highest-earning years, adjusted for inflation
What is the highest Social Security payment?
The maximum possible Social Security retirement benefit in 2024 is $4,873 a month.
However, the maximum benefit changes depending on your age at retirement. For an individual retiring at the normal retirement age of 67, the maximum benefit in 2024 is $3,822.
Bottom Line
In 2024, the average Social Security payment across all groups was $1,783, with retired workers receiving an average of $1,920. Social Security is considered an important source of income for millions of Americans, especially for retirees, disabled people, and survivors.
Nearly 9 in 10 older Americans rely on Social Security as their retirement income, and 77% of current retirees use it to cover necessary expenses. However, with the decrease of the trust fund reserves by 2033, there are growing concerns about the system’s long-term sustainability. Addressing these challenges is vital to ensure that Social Security continues to serve future generations effectively.
Fair Use Statement
If you’d like to share our findings with other businesses or for any other non-commercial purpose, please include a link to this research at RetirementLiving.com.
Sources
- Glossary of Social Security Terms. Social Security Administration. Evaluated April 15, 2024.
Link Here - Annual Statistical Supplement to the Social Security Bulletin, 2005-2023. Social Security Administration, Office of Research, Evaluation, and Statistics. Evaluated April 15, 2024.
Link Here - Monthly Statistical Snapshot, December 2023. Social Security Administration. Evaluated April 15, 2024.
Link Here - Social Security Benefit Amounts. Social Security Administration. Evaluated April 15, 2024.
Link Here - Primary Insurance Amount. Social Security Administration. Evaluated April 15, 2024.
Link Here - What is the maximum Social Security retirement benefit payable? Social Security Administration. Evaluated April 15, 2024.
Link Here - Contributions and Benefit Base. Social Security Administration. Evaluated April 15, 2024.
Link Here - Social Security Credits. Social Security Administration. Evaluated April 15, 2024.
Link Here - Annual Statistical Supplement to the Social Security Bulletin, 2023. Social Security Administration, Office of Research, Evaluation, and Statistics. Evaluated April 15, 2024.
Link Here - National Average Wage Index. Social Security Administration. Evaluated December 3, 2024.
Link Here - Monthly Statistical Snapshot, October 2024. Social Security Administration. Evaluated December 3, 2024.
Link Here - Cost-of-Living Adjustment (COLA) Information for 2025. Social Security Administration. Evaluated December 3, 2024.
Link Here - What is the maximum Social Security retirement benefit payable? Social Security Administration. Evaluated December 3, 2024.
Link Here - FactSheet: Social Security. Social Security Administration. Evaluated December 3, 2024.
Link Here - Fast Facts and Figures About Social Security, 2024. Social Security Administration. Evaluated December 3, 2024.
Link Here - Lane G. and Tori R. Survey: More than half of workers expect to rely on Social Security benefits when they retire, yet 73% are concerned they won’t get them. Bankrate. Evaluated December 3, 2024.
Link Here - The 2024 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. Social Security Administration. Evaluated December 3, 2024.
Link Here - Long-Term Care: The Problem. Paragon Health Institute. Evaluated December 3, 2024.
Link Here