Millions of Americans depend on Social Security every month, especially after retirement. But how much you’ll actually receive depends on a few key things—like your income, how long you worked, and when you start collecting benefits. While most people take their benefits early, waiting can mean a bigger monthly paycheck.
In 2024, the average monthly Social Security check for retired workers is about $1,918. But your personal benefit could be much higher or lower, depending on your choices. If you claim benefits at age 62, you’ll get less. If you wait until 70, you’ll see a noticeable increase—up to 124% of your full benefit. Still, many people start collecting early, even if it means a smaller check.
There’s another piece to this story: Social Security is facing a funding challenge. The money that supports these payments is running low, and unless Congress steps in, future benefits could be reduced. With the aging population growing fast, this issue is becoming more urgent by the year.
How Your Social Security Benefit Is Calculated
Social Security isn’t one-size-fits-all. The monthly amount you receive is based on your earnings over your career, how many years you worked, and—importantly—when you choose to start collecting.
If you claim benefits at age 62, which is the earliest possible age, your monthly check will be permanently reduced. For someone whose full retirement age is 67, taking benefits at 62 means a 30% cut. That’s a big deal—if your full benefit is $1,000, you’d only get $700 per month.
On the flip side, if you delay collecting until age 70, your benefit increases by about 8% each year after your full retirement age. So instead of getting 100% of your benefit at 67, you’d receive up to 124% by waiting until 70. That’s a significant bump if you can afford to hold off.
Here’s what the maximum monthly benefit looks like in 2024, depending on when you retire:
- At 62: $2,710
- At 67 (full retirement age): $3,822
- At 70: $4,873
Use a Social Security Calculator to Estimate Your Benefit
Not sure what your number might be? Tools like a Social Security calculator can give you a personalized estimate based on your birth date, current income, and the age you plan to retire. It’s a quick way to get a clearer picture of what to expect.
Many people underestimate how big a difference the timing makes. For example, someone earning the same salary could end up with hundreds more per month just by waiting a few extra years to start collecting.
Where the Money Comes From
Social Security is funded mainly through payroll taxes. Workers and employers each contribute 6.2% of wages, which goes directly into the system. A smaller portion—about 4%—comes from taxes on Social Security benefits themselves.
That money flows into two trust funds managed by the federal government. These funds are used to pay current retirees and save for future ones. But here’s the issue: those trust funds are shrinking.
The Funding Problem No One Can Ignore
As the American population gets older, more people are drawing from Social Security than paying into it. By the mid-2030s, the trust funds may no longer have enough to cover full benefits. If nothing changes, payments could be cut across the board.
This isn’t the first time Social Security faced a crisis. Back in 1983, lawmakers stepped in when the program was just months away from running dry. They raised the full retirement age gradually from 65 to 67 to help stabilize the system.
Still, it’s been decades since any major changes were made, and with tens of millions of Americans depending on these checks, pressure is mounting once again for Congress to act.
Why This Matters
For many people over 65, Social Security makes up nearly a third of their income. And that group is growing fast—from about 58 million in 2022 to a projected 82 million by 2050. That means more strain on a system already under financial pressure.
Whether you’re years away from retirement or already planning for it, understanding how Social Security works—and what could affect your benefits—is more important than ever. A little planning now can make a big difference later.
