Many individuals have misconceptions about Social Security. The program not only provides reliable income to millions during retirement but also includes cost-of-living adjustments (COLAs) that adjust payments almost every year to align with inflation. Recently, a 2.5% increase in COLAs for 2025 was announced.
There is often confusion about the amount of Social Security benefit payments. Some prospective retirees believe that these benefits will allow them to live comfortably. While this could be true for some, the average monthly retirement benefit in August was $1,920, translating to roughly $23,000 annually.
Setting up a “my Social Security” account on the Social Security Administration website is an effective way to obtain estimates of future benefits. The following table displays the average monthly benefits based on age as of the end of last year:
| Age | Average for All Beneficiaries | Average for Men | Average for Women |
|—–|——————————-|—————-|——————|
| 62 | $1,298 | $1,440 | $1,167 |
| 65 | $1,563 | $1,733 | $1,410 |
| 67 | $1,884 | $2,094 | $1,676 |
| 70 | $2,038 | $2,257 | $1,816 |
| 75 | $2,102 | $2,228 | $1,800 |
| 80 | $1,940 | $2,139 | $1,750 |
| 85 | $1,864 | $2,034 | $1,712 |
(Source: Social Security Administration)
For those who find these figures discouraging, especially women who have historically earned less than men, there are strategies to increase benefits. Delaying benefits is one such method. For many, waiting until age 70 to claim benefits may be advantageous if circumstances allow.
Coordinating benefit claims with a spouse can also optimize benefits. For instance, the spouse with higher earnings might wait until age 70 to claim benefits, while the other begins collecting sooner. By becoming better informed about Social Security, individuals can potentially enhance their benefits.
