If Your Monthly Social Security Check Is Larger Than This, You're Beating the Average Retiree

Social Security provides vital retirement income for many individuals. The average monthly retirement benefit currently stands at around $2,089, or roughly $25,000 annually. This figure is set to increase in January with a 3.6% cost-of-living adjustment. If you aim to surpass this average benefit, there are a few strategies you can employ.

However, before delving into those, it's necessary to understand how these benefits are determined. Social Security considers your top 35 years of earnings when calculating your monthly benefit, adjusting earlier years for inflation. The age at which you claim benefits also plays a significant role. If you file at your full retirement age, typically 67 for those born in 1960 or later, your benefits remain unchanged.

You can start collecting Social Security as early as age 62, but claiming earlier results in reduced payments. Conversely, delaying your claim past full retirement age can lead to larger checks. Each year you wait until age 70 adds an 8% boost to your benefits. To enhance your Social Security in retirement, focus on increasing your wages and delaying benefits for as long as possible.

Waiting until age 70 can result in a 24% increase in your benefits compared to starting at 67. Additionally, the more you earn, the higher your benefits may be. If you find yourself earning a substantial income towards the end of your career, extending your work time could lead to more generous benefits. It's important to note that Social Security is a lifelong income source, and larger checks can offer greater long-term stability.

If you're looking to collect more than the average monthly retirement benefit, aim to file strategically and build a strong wage record.