Social Security provides monthly benefit checks to various recipients. As of April 2024, the average payment is $1,776.73, as reported by the Social Security Administration. However, the amount varies significantly depending on the recipient type. Generally, retirees receive higher payments than the overall average.

Here’s a breakdown of the average Social Security check by recipient type, how the payment may increase over time, and the maximum benefit available.

Social Security serves a diverse range of recipients beyond retirees, including the disabled, spouses, minor children of retirees, and surviving spouses and children of deceased workers. Each group receives varying amounts of benefits.

For instance, as of April 2024, the average retired worker receives $1,915.26 monthly, which is approximately 8 percent higher than the overall average Social Security payment. Here’s a breakdown of benefits by recipient category:

  • Retirement Benefits: This category constitutes 79% of Social Security payments, primarily benefiting retired workers who receive an average of $1,915.26 per month. Spouses and minor children of retired workers receive about $893 – $911 monthly on average.
  • Survivor Benefits: Accounting for 8.6% of Social Security payments, survivor benefits are primarily received by non-disabled widows or widowers who get an average of $1,781.78 monthly.
  • Disability Benefits: Disability insurance makes up approximately 12.4% of Social Security payments, with disabled workers receiving an average of $1,537.57 monthly.

Furthermore, some Social Security benefits may not be fully taxable. Certain recipients can legally avoid paying taxes on their benefit checks.

The Social Security benefit, while substantial, could lose its purchasing power over the next 30 years if it remains unchanged, primarily due to inflation. To counteract this, Social Security adjusts its benefit checks periodically through a Cost of Living Adjustment (COLA).

This adjustment is linked to a specific version of the Consumer Price Index (CPI), which tracks the impact of inflation on consumer goods and services prices.

Typically, the COLA is relatively modest. For example, in 2024, recipients saw a 3.2 percent increase in their benefits, reflecting higher inflation rates. This followed a larger 8.7 percent increase in 2023.

Here’s an overview of the COLA adjustments that Social Security recipients have received over the past decade.

YearCOLA increase
20243.2%
20238.7%
20225.9%
20211.3%
20201.6%
20192.8%
20182.0%
20170.3%
20160%
20151.7%
Source: Social Security Administration

If you had started with a $1,000 benefit in 2014, your total check would have increased to $1,307.75 by 2024.

The maximum Social Security benefit you can receive depends on several factors: your lifetime earnings, the age at which you start receiving benefits, and any cost of living adjustments (COLA) that increase your benefits over time.

Here are the maximum initial monthly benefits for 2024 based on retirement age:

  • At age 62: $2,710
  • At full retirement age: $3,822
  • At age 70: $4,873

These amounts assume that a worker had consistent earnings at or near the maximum taxable level since age 22. For 2024, the maximum taxable income is $168,600, which typically increases annually. To estimate your benefit check:

Your benefit is calculated based on your earnings, up to the annual maximum. Delaying when you start receiving benefits can significantly increase your monthly amount. Workers can claim benefits as early as age 62 with at least 10 years of work history, but full retirement age ranges from 65 to 67 depending on birth year.

Claiming benefits early results in a reduced monthly check compared to what you would receive at full retirement age or later. Conversely, waiting until age 70 can lead to higher monthly benefits.

Deciding when to claim Social Security benefits is a heavily debated topic among recipients.

To receive these benefits, you and your employer each contribute 6.2 percent of your income to Social Security, up to the maximum taxable earnings. If you are self-employed, you are responsible for both portions of the tax.

The average Social Security payment was never intended to fully replace a retired worker’s income. Therefore, it’s crucial to incorporate Social Security into your broader retirement strategy rather than relying solely on it as your primary income source. If retirement is still years away for you, it’s essential to begin saving and investing now, leveraging the advantage of time to build a secure financial future.