The average Social Security benefit for those turning 65 is an important consideration for retirees. Social Security is a key source of income for most retirees and is an important factor in determining how much money a retiree will have in retirement. Knowing the average Social Security benefit at 65 is important for retirees to understand how much they can expect to receive in retirement.
What Is the Average Social Security Benefit at 65? – BestBudgetUSA
At age 65, the average Social Security benefit for retirees is approximately $1,503 per month. This amount is calculated based on the average earnings of a worker’s 35 highest-earning years. This amount can vary depending on the individual’s personal earnings history.
Those who earned more over the course of their career will receive a larger benefit, while those who earned less will receive a smaller benefit. In addition to the average Social Security benefit, those who are eligible may also receive a Medicare Part A premium, which can range from $0 to $458 per month.
Furthermore, individuals may also be eligible to receive additional benefits such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), which can increase the amount of money they receive each month.
In order to determine the exact amount of Social Security benefits an individual is eligible to receive, they should contact the Social Security Administration.
For most of the last century, 65 was considered the standard retirement age in the United States, but that doesn’t mean most Americans actually retire at that age. In 1992, for example, the average retirement age in the U.S. was 62 for men and 59 for women, according to a Forbes report that cited data from the Center for Retirement Research at Boston College.
Since then, the average retirement age has moved closer to what was considered normal. In 2001, the average retirement age was 63 for men and 60 for women, and nine years later these averages rose to 64 and 62 respectively. In 2021, the average retirement age was 65 for men and 62 for women.
Of course, just because you retire at 65 doesn’t mean you have to start collecting Social Security benefits at that age. You can wait until age 70, which many Americans do, because the longer you wait, the higher your monthly payment.
For those collecting Social Security at age 65, the average payment in 2022 was about $2,484 per month, according to the Social Security Administration. That’s based on the agency’s estimate that the average annual benefit was $29,806 for Social Security recipients who are 65. The average annual benefit for 65-year-olds in 2023 rose to $30,708, or $2,559 per month.
Those numbers are much higher than the average monthly benefit for all Social Security recipients, which was $1,546.59 in August 2022, according to the SSA. The difference is due to a number of factors, including the fact that beneficiaries younger than 65 typically receive lower payments.
Average benefits for 65 years old have been rising for several decades in today’s dollars. But when you adjust for inflation, payments have fallen in recent years. According to the SSA, the estimated average annual benefit for beneficiaries age 65 in constant 2001 dollars is as follows:
- 2020: $15,313
- 2021: $15,269
- 2022: $15,230
- 2023: $15,189
- 2024: $15,142
Although the SSA implements annual cost-of-living adjustments to help beneficiaries cope with inflation, these adjustments are not always effective in combating the actual rate of inflation. Look no further than 2022, when the COLA was 5.9%, but the real inflation rate exceeded 8% for much of the year.
If you are approaching age 65 and want to get an estimate of your Social Security benefits, AARP recommends using our own Social Security Benefits Calculator or checking your online Social Security account. The latter option bases the estimate on your earnings record with the SSA. With the AARP calculator, you’ll need to provide your average annual income.
Conclusion
The average Social Security benefit at age 65 is around $1,470 per month, according to the Social Security Administration. This amount is determined by a formula that takes into account the number of years a person has worked and the amount of money they have earned over their career. It is important to remember that this amount is not guaranteed, and may vary depending on the individual’s work history. Therefore, it is important to plan for retirement and budget accordingly, in order to ensure that you will have enough money to cover your living expenses. Best Budget USA can help you create a budget that will enable you to live comfortably and securely during your retirement years.