The Social Security Administration is responsible for providing a social base on which workers build their future after retirement. It is also responsible for financially assisting workers and their families who become disabled or die from work-related accidents. Being a determining factor in life, most people often wonder how much Social Security pays.
The social security payment depends on the worker’s earnings and years of employment. Although each person receives an individual price based on their efforts, an average amount is paid to Americans in the middle social strata. If you want to know how Social Security works, how much you will receive in retirement, and the average payment, we will answer your questions.
The retirement benefit is calculated according to a lifetime of work earnings paid into Social Security. The more income you have generated, the higher the retirement payment; however, there is a limit because the amount you receive is also determined by other aspects, such as the age at which the benefit is claimed.
According to the same social security, the average monthly payment received by a common American in 2022 is $1,657 each month. A retiree’s maximum amount per month is $3,345 at age 67, considered the oldest age that qualifies for the benefit.
The best alternative for citizens is to retire at 62 and start collecting at 67. Those who quit and claim the money at the same age have the possibility of collecting 30% less than those who do so five years later. Based on this premise, a new question arises: Will I receive more benefits, even if I have not worked for the last five years?
Yes, citizens have until the age of 67 to increase their Social Security benefits. All the more reason for those who have a high salary or have some gaps in their work record. Benefits are calculated based on average monthly earnings during the first 35 years of employment. If a person works less than this amount, they will receive a lower-than-average payment.
There is no way to know the exact amount of Social Security you will receive. Still, you can estimate it by using the AARP Social Security Benefits Calculator or checking you’re My Social Security online account.
With both tools, you can get how much you’ll receive each month when you turn 62 and retire. For example, the calculator estimates that a citizen born on January 1, 1960, and earning an average annual income of $50,000 would have a monthly payment of $1,911 at age 67 but would increase to $2,370 if they apply for the benefit at age 70.
With the calculator, you can also estimate accurate figures at each age to determine when you want to retire. If you have more questions about your retirement, we invite you to call the Social Security Citizen Service Center at 800-77-1213.
To use the Social Security Benefits Calculator, you must download and create an account on the My Social Security application. You can also create your account in the desktop version by following this link https://www.ssa.gov/myaccount/ in your preferred browser.
Through this system, you can verify your earnings, obtain your Social Security statements, and access everything related to the institution from your home. Enter the platform, complete the form and use the calculator.