Key Points
-
Average Social Security benefits are not massive.
-
It’s best to plan to have multiple income streams in retirement.
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You may be able to increase your Social Security benefits.
In 1967, the Beatles released the song “When I’m 64,” asking the question “Will you still need me, will you still feed me, when I’m 64?” Those are fine questions, but another good question related to that age is: “What will my Social Security benefits be when I’m 64?” Read on for the answer — and the answer for some other ages, too.
Below are average monthly Social Security benefits for people of various ages, as of the end of last year.
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|
Age |
Average benefit, all |
Average benefit, men |
Average benefit, women |
|---|---|---|---|
|
62 |
$1,342 |
$1,486 |
$1,207 |
|
64 |
$1,425 |
$1,574 |
$1,289 |
|
65 |
$1,611 |
$1,785 |
$1,453 |
|
67 |
$1,930 |
$2,143 |
$1,719 |
|
70 |
$2,148 |
$2,390 |
$1,909 |
|
75 |
$2,065 |
$2,278 |
$1,857 |
|
80 |
$2,006 |
$2,206 |
$1,816 |
|
85 |
$1,944 |
$2,120 |
$1,788 |
Data source: Social Security Administration.
The first thing you might notice is that those are not very big amounts. If you’re earning an annual salary of, say, $72,000 right now, you’re grossing $6,000 per month, and if your overall tax rate is 24%, you’re netting $4,560. The Social Security benefits above pale next to that.
But keep some things in mind:
- Those are averages, and people who enjoyed above-average earnings in their working lives will enjoy above-average benefits.
- Still, benefits max out at $5,108 per month — a maximum that hardly anyone will qualify for.
- Each of us should set up a my Social Security account with the Social Security Administration (SSA), to see estimates of our future benefits based on our earnings history.
- It’s possible to increase your Social Security benefits, such as by delaying claiming them.
- No one should be aiming to live off Social Security alone. Ideally, set up multiple income streams for your retirement years, with sources such as dividend-paying stocks, interest-bearing accounts, retirement accounts, pensions, annuities, and/or rents from real estate properties.
It’s smart to get savvy about Social Security and other retirement topics, to help plan effectively.
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