The Social Security Administration released the average monthly Social Security benefit amounts for January 2025. The average check for retired workers was $1,978.77. This figure reflects retirees’ lifetime earnings, benefits claimed, and years worked.
The SSA calculates benefits using a formula based on each individual’s 35 highest-earning years. In January 2025, 54.5 million people received retirement benefits from Social Security. Of those, 51.9 million were retired workers, and 1.8 million were spouses of retired workers.
The number of children of retired workers was not specified. To get the maximum Social Security benefit, you must work at least 35 years, earn the maximum taxable amount, and wait until age 70 to apply for benefits. Retiring at 62 results in a 29.2% reduction in benefits compared to retiring at the full retirement age of 66 years and 10 months.
Delaying retirement until 70 increases benefits by 30.7%. It’s important to remember that Social Security benefits are designed to replace only about 40% of pre-retirement earnings. Financial experts recommend supplementing Social Security with savings, pensions, or other investments.
Working with a financial planner can help create a comprehensive retirement strategy. By understanding the average Social Security check and planning accordingly, retirees can better secure their financial future in their golden years. The average Social Security benefit varies from state to state due to income levels and cost of living differences.
In 2025, there is a significant gap between the states with the highest and lowest average payments. For example, the estimated average monthly benefit in Mississippi is about $1,816, while in New Hampshire it’s $2,405.
Average monthly benefit for retirees
These estimates from the Social Security Administration consider cost-of-living adjustments (COLAs). The COLA for 2024 was 3.2%, and for 2025, it was 2.5%. Some of the states with the highest estimated average monthly benefits in 2025 include:
– New Hampshire: $2,405.00
– Connecticut: $2,388.22
– New Jersey: $2,342.55
– Maryland: $2,339.58
– Minnesota: $2,299.06
On the lower end of the spectrum are states like:
– Mississippi: $1,816.45
– Louisiana: $1,830.34
– Arkansas: $1,868.37
– West Virginia: $1,891.54
– Kentucky: $1,901.45
One way to increase your Social Security benefits is to wait until full retirement age or later to start claiming.
The full retirement age is 67 for those born in 1960 or later. Starting benefits at 62 can reduce the monthly amount by nearly a third compared to waiting until full retirement age. 2025 the maximum possible Social Security benefit would be $5,108 monthly.
However, this is typically only achieved by those who delay retirement past full retirement age and have earned high incomes throughout their careers. Saving in retirement accounts like 401(k)s and IRAs can help supplement Social Security income. Careful planning and understanding the expected benefits are key to ensuring a comfortable retirement.
Living solely on Social Security can be financially challenging, but many retirees and people with disabilities do it every day. Budgeting carefully, finding ways to save money, and enrolling in assistance programs like SNAP (Supplemental Nutrition Assistance Program) can help make ends meet. Some people choose to move to areas with a lower cost of living to stretch their Social Security dollars further.
Others aim for a higher-than-average benefit payment by working longer careers, strategically increasing their earnings, and waiting as long as possible to apply for benefits. The median Social Security payments vary widely from state to state. For example, the total monthly benefits paid out in January 2025 ranged from over $9.3 billion in California to about $162.8 million in Alaska.
Understanding these median payments across different states can help individuals plan for retirement and consider where they might want to live to maximize their benefits. Combining this knowledge with strategies to increase monthly Social Security checks potentially can make a significant difference in securing a stable financial future in retirement.
Image Credits: Photo by Debby Hudson on Unsplash
