Social Security is, for better or worse, a financial pillar that's responsible for buoying our nation's retired workforce.
Each month, 63 million benefit checks go out to eligible beneficiaries, of which seven out of 10 are retired workers. Of these retirees, more than three out of five rely on the program for at least half of their income, with 34 percent leaning on Social Security for virtually all of their income (90 percent-plus).
But you might be surprised to find out that the average Social Security benefit paid to retirees isn't all that much money. According to data from the Social Security Administration from January 2019, the average benefit paid out to the program's nearly 43.9 million retired workers was $1,463.97 or $17,568 for the year. That's about 41 percent higher than the federal poverty income level of $12,490 in 2019.
However, this payout could be substantially higher, if one condition is met.
Understanding how your retirement benefit is calculated
When the Social Security Administration (SSA) determines your retirement benefit, it takes into account five factors. First, the agency determines whether or not you've met the required 40 lifetime work credits to earn a Social Security retirement benefit. Most workers will have little trouble doing so since earning the maximum of four credits per year can be done in 2019 with just $5,440 in earned income ($1,360 in income per credit).
Each month, 63 million benefit checks go out to eligible beneficiaries, of which seven out of 10 are retired workers. Of these retirees, more than three out of five rely on the program for at least half of their income, with 34 percent leaning on Social Security for virtually all of their income (90 percent-plus).
But you might be surprised to find out that the average Social Security benefit paid to retirees isn't all that much money. According to data from the Social Security Administration from January 2019, the average benefit paid out to the program's nearly 43.9 million retired workers was $1,463.97 or $17,568 for the year. That's about 41 percent higher than the federal poverty income level of $12,490 in 2019.
However, this payout could be substantially higher, if one condition is met.
Understanding how your retirement benefit is calculated
When the Social Security Administration (SSA) determines your retirement benefit, it takes into account five factors. First, the agency determines whether or not you've met the required 40 lifetime work credits to earn a Social Security retirement benefit. Most workers will have little trouble doing so since earning the maximum of four credits per year can be done in 2019 with just $5,440 in earned income ($1,360 in income per credit).
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