Retirement benefits are becoming essential since the Cost of Living keeps increasing and affecting millions of Social Security beneficiaries in the United States. Many American workers wonder how much they could get.
The Social Security Administration’s largest benefit is worth $4,873 in 2024. However, this maximum amount is just for those who have earned the taxable maximum for a minimum of 35 years and filed at 70. Average payments are not so high though.
SOCIAL SECURITY PAYMENT AMOUNTS IN RETIREMENT
Every worker can have a different payment amount in retirement. This is because Social Security takes into account your earnings, taxes, filing age and the number of years worked. Still, average payments can give you an idea of what checks could be like.
As of April 2024, the average payment for retirees is worth $1,915. This average amount is about 3.2% higher than in 2023, thanks to the latest Cost of Living Adjustment increase last January.
After the 2.6% COLA increase prediction for 2025, the average payment will be worth $1,964. This increase is much lower than the COLA boosts for 2023 and 2022, but it is higher than average COLAs.
SOCIAL SECURITY STATEMENT
If you would like to know a more accurate figure, it is time to download your Social Security annual Statement. In this way, the Administration will be able to tell you all the different payment amounts from 62 to 70.
The Administration also offers the possibility of using retirement benefit calculators. However, they may not be so accurate since you may make some mistakes when providing SSA with the necessary information.
American workers who would like to get more money in retirement need to follow three tips:
- delay retirement until you are 70
- work for at least 35 years
- have jobs covered by SSA with a large salary