What Is the Average Social Security Payment?

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. Payments are made monthly, and payment 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 Takeaways:

• The average Social Security benefit payment in March 2024 was $1,774.83. The average payment for retired workers receiving Social Security payments was $1,913.31.
• As of March 2024, over 67 million Americans were receiving Social Security benefit payments (including retirement benefits, survivor benefits and disability insurance).
• The average Social Security benefit payment for a retired worker rose from $955 in 2004 to $1,905.31 in 2023.
• In 2024, the maximum monthly Social Security benefit payment for an individual retiring at the normal retirement age of 67 is $3,822.

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). 

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.

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 March 2024 was 67,521,000. 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 March 2024, the average monthly Social Security benefit payment among all benefit groups was $1,774.83. The average payment for different benefit groups is broken down below.

---

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:

• Ninety percent of $1,174 = $1,056.60
• Thirty-two percent of $5,904 = $1,889.28
• Fifteen percent 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 retired at age 62 in 2024, the maximum benefit drops to $2,710. If they retired at age 70 in 2024, the maximum benefit would be $4,873.

Social Security payments through the years

Due to the calculations referenced above, Social Security payments tend to rise each year. 

The average Social Security payment in 2023 among all benefit groups (retirees, survivors, disabled workers and spouses/children) was $1,767.03. The average benefit for retired workers was $1,905.31. 

Below are the average benefits for all Social Security recipients and retired workers over the past 20 years.

FAQ

How many Americans receive Social Security benefits?

As of March 2024, more than 67 million Americans were receiving Social Security benefits, including retirement benefits, survivor benefits and disability insurance. More than 53 million individuals were receiving 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. The Social Security Administration calculated the national average wage at $63,795.13 in 2022. An individual earning the average wage in 2022 would have paid $3,955.30 in Social Security taxes, and their employer would have paid the same. 

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. 

Sources

1. “Monthly Statistical Snapshot, March 2024.” Social Security Administration. Evaluated April 15, 2024.
2. “Glossary of Social Security Terms.” Social Security Administration. Evaluated April 15, 2024. 
3. “Annual Statistical Supplement to the Social Security Bulletin, 2005-2023.” Social Security Administration, Office of Research, Evaluation, and Statistics. Evaluated April 15, 2024.
4. “Monthly Statistical Snapshot, December 2023.” Social Security Administration. Evaluated April 15, 2024.
5. “Social Security Benefit Amounts.” Social Security Administration. Evaluated April 15, 2024. 
6. “Primary Insurance Amount.” Social Security Administration. Evaluated April 15, 2024. 
7. “What is the maximum Social Security retirement benefit payable?” Social Security Administration. Evaluated April 15, 2024. 
8. “Contributions and Benefit Base.” Social Security Administration. Evaluated April 15, 2024. 
9. “Social Security Credits.” Social Security Administration. Evaluated April 15, 2024. 
10. “Annual Statistical Supplement to the Social Security Bulletin, 2023.” Social Security Administration, Office of Research, Evaluation, and Statistics. Evaluated April 15, 2024. 
11. “National Average Wage Index.” Social Security Administration. Evaluated April 15, 2024.