AARP Hearing Center
Alice Mollon
Key takeaways
- Retirees who qualify can receive monthly income for life.
- You have some control over the money you’ll receive.
- But if you file early, your benefits are reduced permanently.
- Yearly cost of living adjustments help you cope with inflation.
- Newer programs also help with finances. You can apply online.
Every month, millions of Americans receive a Social Security retirement benefit that replaces part of the income they earned while working.
The payments, a majority delivered via direct deposit, are part of what the Social Security Administration (SSA) calls “the most successful anti-poverty program in our country’s history.”
But they aren’t meant to be all you’ll need.
Typically, you can expect your retirement benefit to replace about 40 percent of your working income. Financial planners say you’ll need 70 percent to 80 percent of your preretirement income to maintain your lifestyle.
Only about 23 percent of retirees rely solely on Social Security, according to the Gallup polling organization. The rest have one or more additional sources of income, a 2024 Federal Reserve report shows:
- More than half have a pension, 401(k) or 403(b).
- Almost half have interest, dividends or rental income.
- A third have a job, at least on the side, or a working spouse.
- And 8 percent get cash transfers other than Social Security.
The big question: How much money will I get?
Whether you’re 50, 60 or 70, the first thing you probably want to know is how much you’ll receive each month when you retire.
First, you need to know your full retirement age, which is 67 for people born January 2, 1960, and later. It’s the age at which you’ll receive 100 percent of your monthly benefit. If you were born in 1960, your 65th birthday is in 2025.
The formula is complicated. That’s why AARP offers a simple Social Security calculator to give you an idea of what you’ll receive at the minimum filing age of 62; your full retirement age, which people born in 1958 will reach in 2025; and age 70, the age when you’ll get maximum benefits. All you need to know is your date of birth, previous year’s salary and the same information for your spouse if you are married.
Your top 35 years — or up to 35 years — of earnings become the basis for your benefit calculation.
The amount you’ll receive is based on your highest 35 years of earnings, adjusted for inflation. Then the numbers are recalculated to determine the benefits you’re entitled to receive if you file at your full retirement age.
As of June 2025, the average retiree was receiving more than $2,000 a month in retirement benefits. That’s more than $24,000 a year.
Check out your numbers online. The Social Security Administration has your earnings history. To see its estimate of your retirement benefits, go online using your My Social Security account.
If you don’t have an online account, you can sign up for one by supplying an email address, cellphone number, your Social Security number and other personal information. You’ll receive a security code, similar to one you get when logging in to online banking, to help you complete the process.
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