Millions of retirees rely on Social Security to cover essential expenses like housing, transportation, and food. If you’re curious about how your Social Security benefit compares to the average retiree, the Social Security Administration (SSA) has the answer.
As of July 2024, the average monthly benefit for retired workers was $1,919.40, which translates to a little over $23,000 per year.
But don’t worry, if your benefit seems low, you may be eligible for a cost-of-living adjustment (COLA) in 2025, which is estimated to be 2.57%. This would bump the average benefit up to $1,968.73 per month. Keep in mind, the COLA percentage could change depending on inflation and other factors.
How to Increase Your Social Security Benefit
If you’re not yet retired and aiming for a higher monthly benefit, there are strategies you can use to boost your Social Security payout. Your Social Security benefit is based on your highest 35 years of earnings.
The more you earn during those years, the higher your benefit will be. So, how can you make that happen?
1. Grow Your Income
Increasing your wages over your career is key to getting a bigger Social Security check. Seek out promotions or switch jobs to earn more. Building new skills or pursuing educational opportunities can also help you increase your income over time. Don’t underestimate mentorship programs, which can help guide you toward better-paying positions in your field.
2. Work for 35 Years
Social Security calculations are based on your top 35 earning years. If you haven’t worked that long, zeros will be factored into the calculation, which can reduce your benefit. To avoid this, aim to work at least 35 years before retiring.
If you’re nearing the end of your career and don’t have 35 years of employment, consider working a bit longer to replace those zero-income years.
3. Delay Filing Beyond Full Retirement Age
If you want to maximize your Social Security benefit, consider waiting beyond your full retirement age (FRA) to file. For those born in 1960 or later, FRA is 67.
For every year you delay filing beyond that age, your monthly benefit increases by 8%, up until age 70. This strategy can lead to a significantly larger Social Security payout over your lifetime.
Making the Most of Your Social Security Benefit
Already retired and receiving less than the average $1,919.40 per month? Don’t worry, there are ways to stretch your Social Security income and even supplement it.
1. Join the Gig Economy
If your Social Security benefit isn’t enough to cover your expenses, consider joining the gig economy. You can work flexible hours while still receiving your monthly Social Security check.
Just be aware of earnings limits if you haven’t reached full retirement age yet. Exceeding the limit could temporarily reduce your benefits.
2. Relocate to a Lower-Cost Area
Another way to make your Social Security go further is to relocate to a part of the country with a lower cost of living.
If you can find affordable housing, cheaper groceries, and reduced expenses, your Social Security check will stretch much further. Research different regions to find a balance between comfort and cost savings.
Little-Known Ways to Boost Your Social Security
Many retirees are unaware of some lesser-known strategies that can increase their Social Security benefits. One such strategy is optimizing when and how you claim benefits based on your personal situation.
For example, delaying spousal benefits or utilizing restricted applications could provide significant additional income over time.
FAQs
What is the average Social Security benefit in 2024?
The average monthly benefit in 2024 is $1,919.40.
How can I increase my Social Security benefit?
Increase your income, work for 35 years, and delay filing past your full retirement age.
Will there be a COLA increase in 2025?
Yes, estimates suggest a 2.57% increase, bringing the average benefit to $1,968.73.
Can I work while collecting Social Security?
Yes, but if you’re under full retirement age, be mindful of earnings limits to avoid reduced benefits.
Should I relocate to make my Social Security go further?
Relocating to a lower-cost area can help stretch your Social Security income.
