Social Security checks are a crucial source of income for millions of Americans in retirement. However, some retirees will notice a boost in their September checks, with certain states standing out for providing higher payments.
These higher-than-average Social Security checks depend on several factors, including the individual’s work history, previous earnings, and state of residence. But what’s behind the variation, and how can retirees maximize their benefits?
Higher Checks
Social Security benefits are calculated based on an individual’s lifetime earnings and the date they begin claiming benefits. States with higher median incomes or retirees who have worked longer in high-paying jobs often see larger Social Security payments. So, while Social Security is a national program, state-to-state differences in income levels can impact monthly payouts.
Additionally, the Cost of Living Adjustment (COLA) plays a vital role in how much beneficiaries receive. COLA is adjusted annually based on inflation rates, which means states with higher inflation and living costs could result in increased Social Security payments.
Here are the states where retirees receive the highest median monthly Social Security checks, based on a recent report:
| State | Median Monthly Check |
|---|---|
| New Jersey | $2,100 |
| Connecticut | $2,084 |
| Delaware | $2,064 |
| New Hampshire | $2,039 |
| Maryland | $2,008 |
| Michigan | $2,005 |
| Washington | $1,992 |
| Minnesota | $1,982 |
| Indiana | $1,952 |
| Massachusetts | $1,946 |
It’s important to remember that moving to one of these states won’t necessarily increase your Social Security benefits. Social Security payments are determined by your earnings record, not where you live. However, retirees in states with higher wages throughout their careers will likely see larger checks due to the calculation formula used by the Social Security Administration (SSA).
Strategies to Maximize
While you can’t change your work history, there are strategies to help you increase your Social Security checks. Here are three essential tips:
Work for at Least 35 Years
Social Security benefits are calculated based on your 35 highest-earning years. If you’ve worked fewer than 35 years, any missing years will count as zero, lowering your benefit amount. So, working for at least 35 years ensures that you’re getting the most from your Social Security. If you’re still working, each additional year of high earnings can replace a lower-earning year, boosting your monthly check.
Maximize Earnings During Your Career
The more you earn, the higher your Social Security payments will be. Social Security taxes are based on your income, and higher wages translate into larger benefits. However, there is a cap to how much of your earnings are taxable, which for 2024 is $168,600. This means that earning more than this amount in a given year won’t increase your Social Security taxes or benefits.
To maximize your check, focus on earning as much as possible during your working years. In some states, where the average wage is higher, retirees tend to have larger Social Security benefits, reflecting their higher lifetime earnings.
Choose the Right Time to Claim
Timing is everything when it comes to Social Security. You can start claiming benefits as early as age 62, but doing so can reduce your monthly checks by up to 30%. Alternatively, waiting until after your full retirement age (FRA)—which ranges from 66 to 67 depending on your birth year—can significantly increase your payments. For every year you delay claiming benefits past your FRA, your check increases by 8%, up until age 70.
Deciding when to start collecting Social Security is a personal decision that depends on your health, financial needs, and life expectancy. Those who expect to live longer may benefit from delaying their benefits to receive higher monthly payments.
High-Earning States
The size of Social Security checks across different states often reflects income variations, but they are also affected by the Cost of Living Adjustment (COLA). While COLA is applied nationwide, its impact can vary depending on a retiree’s state. In states with higher living costs and median incomes, retirees generally see bigger Social Security checks due to higher contributions during their working years.
Social Security is a lifeline for retirees, but the amount you receive can vary significantly based on several factors. Those living in states with higher median incomes are likely to see larger checks, but ultimately, Social Security benefits are tied to your lifetime earnings and when you start claiming. Maximizing your earnings, working for at least 35 years, and choosing the right time to claim are key to getting the most out of your Social Security benefits.
FAQs
Who gets the highest Social Security checks?
Retirees in states like New Jersey, Connecticut, and Delaware tend to receive the highest checks.
How can I increase my Social Security benefits?
Work at least 35 years, maximize your earnings, and delay claiming.
Does the state I live in affect my Social Security?
No, benefits are calculated based on your earnings, not your state of residence.
What is the maximum Social Security benefit in 2024?
For 2024, the maximum taxable earnings limit is $168,600.
Can delaying Social Security increase my monthly check?
Yes, delaying past your full retirement age can increase payments up to age 70.
