What is the actual amount of Social Security you will receive at retirement?
Are you planning your retirement? You might be wondering what your Social Security benefits will be. Here we’ll discuss how to calculate the amount of Social Security you will receive when you retire. Here we’ll discuss how you can calculate how much Social Security you’ll receive when you retire.Calculating Your Benefit Payment
According to the Social Security Administration, the average monthly retirement benefit for Social Security recipients is currently about $1,976 in 2025. This number depends on the years of work and age at which you claim your Social Security. The Social Security Administration will “index” earnings to reflect the change in general wage levels that occurred during the worker’s years of employment.
According to the SSA, “up to 35 years of earnings are needed to compute average indexed monthly earnings. We then choose the years that have the highest indexed income, add up the indexed earnings and divide by the total number months. The average amount is then rounded down to the lowest dollar amount. This is AIME. This table shows the benefits based on AIME. You can also use this calculator to estimate your benefit payment.
You’ll be eligible to collect your Social Security payment at age 62, but waiting to collect may mean that you’ll get a bigger payout. You can receive your full benefit if you wait until your full retirement age of 67. As you can see, your payment will increase each month that you wait to claim benefits. As you can see, your payment will go up with each month you wait to claim your benefits.
Should You Wait to Collect?
You can start to collect your Social Security as late as age 70 and as early as 62. You will receive monthly payments throughout your life, no matter when you begin collecting. You may need to start collecting this income earlier than the full retirement age if you plan on retiring early. You will receive a lower monthly payment, but you will collect longer than if waited. Benefits could start years before you reach full retirement age. In the long run, this may be more beneficial than waiting for a larger payment.
While you can start collecting at 62, many people wait. If you wait to claim at 62 you will receive about 30% less per month. If your monthly retirement benefit is $2,000, and you claim it at age 62, then you will only receive $1400. You will have about $84,000 by the time you reach full retirement age at 67. While there is no right answer as to when you should start receiving benefits, it’s important to plan accordingly.
If you need additional help estimating your Social Security payment, you can always visit your local Social Security office or contact the SSA online.
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Teri Monroe started her career in communications working for local government and nonprofits. She is now a freelance lifestyle and finance writer, and a small business owner. She loves to golf with her husband and take her dog Milo for long walks. She also enjoys playing pickleball in her free time.
