Social Security benefits hit record high

The average Social Security benefit paid to a retired worker reached an all-time high of $2,002.39 in May 2025. This surpasses last year’s average of $1,917, representing a notable increase within a year. Out of the 69.6 million beneficiaries in the U.S., nearly 17 million receive additional types of benefits, including survivors’ benefits, spousal benefits, and disability benefits. The increase in the average benefit amount is primarily due to a 4.5% increase since the end of 2024, which is higher than the 2.5% cost-of-living adjustment (COLA) for 2025. The Social Security Fairness Act played a significant role in this increase by raising benefits for several million people, particularly former government employees affected by the Windfall Elimination Provision and other regulations. Beneficiaries in this group saw their monthly checks increase by an average of $360. While the $2,002 monthly average benefit is noteworthy, it is essential to remember that it is just an average. Some retirees receive less, while others receive more. The highest possible monthly benefit for someone turning 70 in 2025 is $5,108.

Social Security benefits increase explained

For those who have not yet claimed Social Security, several strategies can help increase their eventual benefits. The SSA adjusts each year of a worker’s lifetime earnings for inflation and considers the 35 highest-earning years in the calculation. Continuing to work during the highest-earning years or filling gaps in the work history can result in higher benefits. The age at which you start claiming Social Security also significantly impacts the benefit amount. Americans can begin collecting benefits between the ages of 62 and 70, but earlier claims result in lower benefits. Delaying benefits, even by a few months, can yield a substantial increase. Individuals can log into the SSA’s web portal to view estimates of their retirement benefits based on their actual work record. This can aid in planning and potentially adjusting retirement strategies for better financial outcomes. Understanding these factors can help individuals maximize their Social Security benefits and retire with greater confidence.