The Social Security program provides monthly benefits to retired and disabled workers, their spouses, surviving spouses, and dependents. According to the Social Security Administration (SSA), around 69 million Americans received Social Security benefits as of September 2022. For many of these people, their monthly Social Security check is a crucial source of income. But how much does the average beneficiary actually receive? Let’s take a closer look at what a typical Social Security check looks like.
Who Receives Social Security Benefits?
There are a few main categories of people who receive Social Security benefits:
- Retired workers – People who have worked and paid Social Security taxes for at least 10 years and have reached age 62, the earliest retirement age.
- Disabled workers – People who have become severely disabled and are unable to work. They can begin receiving benefits before full retirement age.
- Spouses and surviving spouses – The spouses and surviving spouses of workers may also qualify for benefits based on the worker’s earnings record.
- Dependents – Children and sometimes adults disabled before age 22 may receive benefits if a parent who receives Social Security dies or becomes disabled.
According to SSA data, the vast majority (around 83%) of Social Security beneficiaries in September 2022 were retired workers and their spouses and children. About 15% were survivors of deceased workers, and about 2% were disabled workers.
What Factors Determine Benefit Amounts?
Several key factors go into determining the monthly benefit amount a person receives:
- Earnings – Your lifetime earnings that were subject to Social Security taxes will determine your basic benefit, or “primary insurance amount.” Higher lifetime earnings result in higher benefits.
- Age – You can start receiving retirement benefits as early as age 62, but the benefit is reduced if you claim before your full retirement age (66-67 for current workers). Delaying increases the eventual benefit.
- Marital status – Married people may be eligible for spousal benefits based on their partner’s work record. Surviving spouses also qualify for survivor benefits.
- Cost-of-living adjustments – Most years, Social Security benefits are adjusted to keep up with inflation.
So beneficiaries with higher incomes throughout their careers, who delay claiming until an older age, and who qualify for spousal/survivor benefits often get significantly larger Social Security checks.
Average Social Security Benefit in 2023
So what does a “typical” Social Security payment look like? Here are some key numbers on average Social Security benefit amounts for 2023:
Retired Workers
For retired workers who have paid into the system via taxes and meet the credit requirements, the average monthly Social Security benefit is:
- $1,827 for retired male workers
- $1,553 for retired female workers
- $1,665 for all retired workers
As of December 2021, the average age for retired male workers receiving benefits was 73, while for retired female workers it was 71. So higher average benefits for men largely reflect their older age and more years of earnings.
Disabled Workers
For disabled workers, the average monthly benefit is $1,358. To qualify for Social Security disability benefits, the worker generally must have become severely disabled before reaching full retirement age.
This program pays benefits to around 10 million disabled workers plus about 2 million of their dependents and survivors.
Surviving Spouses and Dependents
Among beneficiaries who receive payments based on another worker’s Social Security record, average monthly benefits are:
- $1,566 for non-disabled widows and widowers
- $1,131 for disabled widows and widowers
- $871 for children of retired, disabled, or deceased workers
Children may receive benefits until age 18, or up to age 19 if they are still attending high school.
Adult disabled children may continue receiving Social Security benefits on a parent’s record beyond age 18 if their disability began before age 22.
Across All Beneficiaries
Looking at the Social Security beneficiary population as a whole, the average monthly benefit across all categories – retired workers, survivors, and the disabled – is $1,668 as of December 2021.
Range of Social Security Benefits
Those averages give a broad overview, but there is significant variation around those mean amounts. Here is some additional context on the range that Social Security checks can span:
- As of December 2021, around 9% of retired beneficiaries receive under $500 per month. At the other extreme, around 7% receive over $3,000 per month.
- The maximum possible Social Security benefit for someone retiring at full retirement age in 2023 is $3,538 per month.
- For disabled workers, benefits may be as low as $800 per month for lower-income workers. Maximum possible disability benefits are around $3,300 monthly.
- The average Social Security benefit for women age 65 and older is around 75% of the average benefit for men. This reflects women’s lower lifetime average earnings and fewer years in the workforce on average.
So while the “typical” Social Security check amounts to around $1,500-1,800 monthly, benefits span from under $500 up to over $3,500 depending on work history and other factors.
How Does Social Security Compare to Earnings?
To further understand whether typical Social Security retirement benefits provide adequate income, it is helpful to compare them to recipients’ career earnings.
Among recent retirees, Social Security payments in 2021 replaced:
- 56% of prior earnings for retired male workers
- 57% of prior earnings for retired female workers
- 58% of prior earnings for retired worker couples
So on average, Social Security Retirement benefits replace a little over half of pre-retirement earnings. But replacement rates vary significantly based on income level:
| Worker’s income quintile | Social Security replacement of career earnings |
|---|---|
| Lowest quintile | 83% |
| Second quintile | 69% |
| Middle quintile | 55% |
| Fourth quintile | 45% |
| Highest quintile | 34% |
For lower-income workers in the bottom quintile, Social Security typically replaces over 80% of past earnings. But for higher-income workers in the top quintile, it only replaces around one-third.
This shows how Social Security is designed to especially target adequate income replacement for lower-income retirees. Benefits are progressive, replacing a greater share of earnings for lower earners than for the highest earners.
Purchasing Power of Average Benefits
While the typical Social Security benefit for retirees is around $1,600 monthly in 2022, what matters most is the purchasing power and living standards this provides. Some key statistics help assess this:
- The average annual Social Security benefit in 2021 was $18,984. For retired worker beneficiaries age 65+, this was 85% of the federal poverty level ($22,412) for 2021.
- Social Security benefits increased by 5.9% for 2022 due to the cost-of-living adjustment, the highest increase in four decades. This boosted the average retiree benefit by around $92 per month.
- Nevertheless, the Elder Index, a measure of income needed by older adults for basic expenses, exceeds the average Social Security benefit in every state. The gap ranges from around $300 a month in lower-cost states like Alabama to nearly $2,000 a month in Hawaii.
- Around 5-10% of elderly Social Security beneficiaries have no other retirement income besides their Social Security. For this group especially, Social Security is the sole barrier against poverty.
While Social Security provides the majority of income for most retirees, benefit levels remain modest and many older Americans still struggle financially. Most beneficiaries depend on additional retirement savings and support from family to make ends meet.
How Does the U.S. Compare Globally?
Placed in global context, U.S. Social Security benefits are lower compared to other developed nations.
According to the OECD, the net replacement rate from public pensions for the average earner is 68% in the U.S. vs. an OECD average of 63%.
However, U.S. replacement rates for lower-income earners are lower than most other OECD countries. For those making half the average national earnings, the U.S. has a net replacement rate of 53% compared to the OECD average of 71%.
In terms of payment levels, the average U.S. Social Security benefit was $1,548 per month ($18,576 per year) in 2020.
Across OECD countries, the average public pension benefit was $1,669 per month ($20,028 per year) – about 8% higher than the U.S. level. So the American public pension system provides comparatively less generous benefits compared to many other developed nations.
Projected Changes to Average Benefits
Looking ahead, average Social Security benefits for retirees are expected to increase gradually in the coming decades due to several factors:
- Continued increases in wages. Higher lifetime earnings for workers boosts the initial benefit calculation.
- Longer lifetime benefits. Americans are living longer, and collecting benefits for more years.
- Cost-of-living adjustments. Benefits will continue to be adjusted for inflation annually.
- Later retirement ages. Full retirement age will reach 67 for most future retirees, boosting monthly benefits.
According to Social Security Administration projections, average benefits after inflation for a hypothetical medium earner retiring at age 65 are estimated to rise around 30% from 2023 to 2050:
| Year | Estimated Average Monthly Retirement Benefit |
|---|---|
| 2023 | $1,730 |
| 2030 | $1,908 |
| 2040 | $2,243 |
| 2050 | $2,251 |
So the average Social Security retirement payment is expected to be around $2,250 per month in today’s dollars by the mid-2030s and beyond. This reflects gradually rising standard of living for recipients.
Key Considerations
In summary, some key points about current and future Social Security benefits:
- Typical Social Security benefits today provide around $1,500 to $1,800 per month for retired workers.
- Benefits target adequate replacement for lower earners, but are capped for higher earners.
- Cost-of-living adjustments help maintain purchasing power over time.
- Nevertheless, many beneficiaries depend on other income sources to afford retirement.
- In the future, average benefits are projected to rise gradually with wages, life expectancy, and inflation.
While benefits are modest, Social Security remains the foundation of retirement security for most older Americans. Understanding the program’s benefit structure and future direction is important for workers planning for their retirement.
Conclusion
Social Security provides monthly retirement benefits to over 65 million Americans. Typical benefit amounts for retired workers currently average between $1,500 to $1,800 per month. Benefits are progressive, replacing a larger share of past earnings for low earners compared to high earners. Cost-of-living adjustments help benefits retain purchasing power over time. While modest, Social Security remains the core income source for a majority of retirees. Looking ahead, average benefits are projected to increase slowly for future cohorts as wages rise, life expectancy grows, and full retirement ages increase. But maintaining Social Security’s financial solvency to fund future benefits remains an ongoing challenge for the nation.