The Basics of Social Security Retirement Benefits

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.

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.

You’re discouraged from filing early, encouraged to save

Though retirees become eligible to claim Social Security at age 62, those who file early will have permanently reduced benefits. If you turn 62 in 2025 and decide to apply, your monthly check will be 30 percent lower than if you decide to wait until your full retirement age of 67 in 2030.

If you wait past your full retirement age to file, you’ll add two-thirds of a percent to your check every month until age 70. That’s 8 percent a year.

The money you’ve already saved, inherited or will inherit won’t affect what you receive from Social Security in retirement. Veterans who receive U.S. Department of Veterans Affairs (VA) disability benefits also won’t see changes in their Social Security retirement benefits.

But if you’re 62, have paid fewer than 10 years of Social Security taxes and can’t file based on the work record of your spouse or former spouse, you won’t get Social Security retirement benefits.

The benefits are a hedge against inflation

Once you start receiving Social Security benefits, you’ll get an automatic cost-of-living adjustment (COLA) most years as a defense against inflation. You don’t get that with most pension plans.

Do stock market ups and downs have you gnawing your nails? Your benefits won’t decrease.

If Medicare Part B premiums deducted from your monthly check are scheduled to go up more than your Social Security cost-of-living increase, the rise in Part B premiums will be capped at your COLA amount.

Social Security is not just for retirement

Social Security marked its 90th anniversary on August 14, 2025. Its original intent was to give retired workers 65 and older some economic security when pensions weren’t common, 401(k)s didn’t exist and saving money for old age was difficult if you made an average wage.

But through the years, the program has expanded.

Dependents, survivors. In 1939, Congress extended benefits to beneficiaries’ wives 65 and older, their children younger than 18, widows caring for young children, widows 65 and older, and dependent parents 65 and older. The law now includes husbands and widowers.

Social Security Disability Insurance (SSDI). In 1956, Congress allowed disabled workers 50 to 64 to request benefits. The age threshold was lowered later.

Former spouses. By 1965, ex-wives who had been married at least 20 years could apply for benefits based on their ex-husband’s earnings. Today a marriage needs to last 10 years, the former spouse applying needs to be at least 62, and men and women are on equal footing.

Supplemental Security Income (SSI). In 1974, this program for older or disabled adults with very limited incomes and resources began.

Even though more people are eligible, three-quarters of those receiving benefits today are retired workers.

How do I apply for Social Security?

When you want to file for Social Security retirement benefits, first gather some personal information, including:

• Your Social Security number
• The city, state and country where you were born
• Names, dates and pay rates for your employment in the past five years
• Information about your current and past marriages, minor children or children who developed a disability before age 21
• Your bank account and routing number, so your benefits can be deposited electronically

Then when you’re ready, you can apply online 24/7 using your My Social Security account. You also can make an appointment and apply in person at your local Social Security office or by phone at 800-772-1213.

This story, originally published April 16, 2025, was updated with additional information.

About the author

Linda Dono is a senior executive editor for AARP. Previously, she served as a reporter and editor for USA Today, Gannett News Service and newspapers in four states, including The Cincinnati Enquirer.

About the reviewer

Jammie Lyell, the Social Security program manager for AARP’s office of community, state and national affairs, previously worked at the SSA as a legal administrative specialist and technical expert. He earned a master’s degree in organizational psychology from Walden University.

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