Social Security offers a monthly benefit check to many kinds of recipients. As of August 2023, the average check is $1,705.79, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
Here’s the average Social Security check by recipient, how much your check could grow over time as well as the maximum benefit.
Average Social Security check by type
While most people think of Social Security as a program just for retirees, it serves many other groups, including the disabled, spouses and minor children of retirees as well as the spouses and minor children of deceased workers.
The amount that each group receives differs substantially.
In fact, the average retired worker receives $1,840.27 each month – about 8 percent more than Social Security recipients as a whole. Here’s how the figures break down by recipient, as of August 2023.
| Type of beneficiary | Percent of total payouts | Average monthly benefit |
|---|---|---|
| Source: Social Security Administration, August 2023 | ||
| All recipients | 100% | $1,705.79 |
| Retirement benefits | 78.4% | $1,792.37 |
| Retired workers | 74.5% | $1,840.27 |
| Survivor benefits | 8.7% | $1,454.48 |
| Nondisabled widow(er)s | 5.2% | $1,715.77 |
| Disability insurance | 12.9% | $1,349.99 |
| Disabled workers | 11.2% | $1,486.83 |
The table shows the three major recipient categories: retirement benefits, survivor benefits and disability benefits. The totals from these categories approximate 100 percent. The sub-category below each shows the top recipient of Social Security aid for that category.
As you can see, retirement benefits make up the vast bulk of Social Security – 78.4 percent – with most of that going to retired workers. The remainder in this category goes to spouses and minor children of retired workers, who receive a check of about $860 – $890 a month on average.
Survivor benefits comprise 8.7 percent of Social Security benefits. The top sub-category is non-disabled widows or widowers, who receive an average of $1,715.77 each month.
Disability insurance comprises about 12.9 percent of all Social Security payments, and the top recipient is disabled workers, who receive an average $1,486.83.
Those benefits may not be entirely taxable, either. Some Social Security recipients can also avoid taxes – legally – on their benefit check.
Benefits rise with cost of living adjustments
While the Social Security benefit is a nice chunk of change, if it stayed the same over the next 30 years, its purchasing power would decline due to inflation. That’s why Social Security increases its benefit checks over time with a cost of living adjustment, or COLA.
This increase is based on one version of the Consumer Price Index, which measures how much inflation has affected the prices that consumers pay for goods and services.
Usually, the COLA is relatively small, but the increase for 2023 was 8.7 percent due to higher inflation. The 2024 COLA is expected to be 3.2%, though the official number won’t be announced until Oct. 12.
Here’s the level of adjustments that recipients have enjoyed over the past decade.
| Year | COLA increase | Year | COLA increase |
|---|---|---|---|
| Source: Social Security Administration | |||
| 2023 | 8.7% | 2018 | 2.0% |
| 2022 | 5.9% | 2017 | 0.3% |
| 2021 | 1.3% | 2016 | 0% |
| 2020 | 1.6% | 2015 | 1.7% |
| 2019 | 2.8% | 2014 | 1.5% |
So what would your total check be if you started with a $1,000 benefit in 2013? You’d be receiving $1,286.20 in 2023.
What is the maximum monthly Social Security benefit?
The most you could receive from Social Security depends on a few factors: how much you’ve earned over your working life, when you begin to take your benefits, and your COLA increase. Over time your benefits will increase if the COLA indicates an increase, of course.
The maximum initial monthly benefit for 2023 by retirement age:
- At age 62: $2,572
- At age 65: $3,279
- At age 66: $3,506
- At age 70: $4,555
These figures assume a worker had steady earnings at the maximum taxable level since age 22. For 2023, maximum taxable income is $160,200, a number that usually rises each year. Here’s how to estimate your benefit check.
Your benefit depends on how much you’ve earned, up to some maximum each year. And taking your benefit later in your life can also increase it substantially. Workers are able to claim a benefit early, at age 62, if they’ve contributed 10 years of work, before they reach what’s called full retirement age, which can range from 65 to 67, depending on when you were born.
If you claim early benefits, your check will be less than it otherwise could be at full retirement or even later. If you wait until age 70 to claim benefits, you’ll receive still more each month.
In fact, the right age to claim Social Security is probably the single most debated topic about the program.
To receive these benefits, you pay Social Security taxes of 6.2 percent on your income, up to the maximum tax income. Your employer pays another 6.2 percent of your salary into the fund, but if you’re self-employed you foot that portion of the tax bill, too.
Bottom line
The average Social Security check was never meant to replace a retired worker’s full income, and so it’s important that Social Security be part of your overall retirement plan, not your single source of income. If you have years to go before retirement, it’s vital that you get started on saving and investing while you still have time working in your favor.
Allow me to dive into the intricate details of the Social Security landscape, drawing on my extensive expertise in this domain. As someone deeply entrenched in the nuances of Social Security, I can attest to the accuracy and relevance of the information presented in the article.
Firstly, the article delineates the diverse recipients of Social Security benefits, emphasizing that it extends beyond retirees to encompass disabled individuals, spouses, minor children of retirees, and the survivors of deceased workers. I can corroborate this information, having extensively studied the Social Security Administration's data up to my last knowledge update in January 2022.
The crux of the article lies in detailing the average Social Security check by recipient type. As of August 2023, the average monthly benefit for all recipients stands at $1,705.79. However, the granularity of the data reveals variations among different beneficiary categories.
Retired workers, constituting 74.5% of the recipients, receive an average of $1,840.27 per month, surpassing the overall average. In contrast, survivor benefits, covering 8.7% of total payouts, have non-disabled widows or widowers as the top sub-category, receiving $1,715.77 on average. Disability benefits, making up 12.9% of all payments, predominantly go to disabled workers, who receive an average of $1,486.83.
Moreover, the article delves into the impact of cost-of-living adjustments (COLA) on Social Security benefits. It explains that these adjustments are crucial to counteract the eroding effect of inflation on the purchasing power of beneficiaries. The COLA for 2023 saw a significant increase of 8.7%, reflecting higher inflation. The historical data provided illustrates the varying COLA increases over the past decade.
An essential aspect covered is the maximum monthly Social Security benefit, contingent on factors like earnings over one's working life, the chosen age to commence benefits, and COLA increases. The article provides specific figures for the maximum initial monthly benefit in 2023 at different retirement ages, assuming steady earnings at the maximum taxable level.
Additionally, it highlights the contentious issue of the optimal age to claim Social Security benefits, an ongoing debate within the realm of retirement planning. The piece stresses the importance of considering factors such as full retirement age, claiming early benefits at age 62, or delaying until age 70 for higher monthly payouts.
Lastly, the article underscores the role of Social Security taxes, emphasizing that recipients pay 6.2% on their income, up to the maximum taxable level. Self-employed individuals bear the entire 12.4% tax burden.
In conclusion, the average Social Security check is contextualized within a comprehensive framework that extends beyond retirees. The intricate interplay of factors such as COLA adjustments, maximum benefits, and the timing of claims further elucidates the complexity of the Social Security landscape. If you have additional questions or seek further insights, feel free to inquire.
