Some Social Security beneficiaries may see an above-average increase in their checks this September, depending on several key factors. Monthly Social Security benefits vary greatly across the U.S., with retirees in certain states receiving significantly larger payments than others.
This variance is driven by individual earnings history, the state they live in, and the timing of their initial application for benefits. While the average monthly benefit across the U.S. is roughly $1,900, some retirees in specific states could receive more than $2,000 per month, according to recent data.
Payments
Although Social Security is a federal program, state-by-state differences exist in the amount beneficiaries receive. This is largely due to how Social Security benefits are calculated, which relies on a retiree’s lifetime earnings and the cost of living adjustment (COLA).
States with higher median incomes and costs of living tend to have higher Social Security payouts. For instance, states like New Jersey and Connecticut boast median monthly Social Security checks well above the national average.
Social Security Payments
| State | Median Monthly Payment |
|---|---|
| New Jersey | $2,100 |
| Connecticut | $2,084 |
| Delaware | $2,064 |
| New Hampshire | $2,039 |
| Maryland | $2,008 |
| Michigan | $2,005 |
| Washington | $1,992 |
| Minnesota | $1,982 |
| Indiana | $1,952 |
| Massachusetts | $1,946 |
These figures reflect the fact that retirees in states with higher costs of living and median wages often contribute more to Social Security during their working years, leading to higher monthly benefits in retirement.
However, it’s essential to understand that simply moving to one of these states won’t increase your Social Security payments. Social Security checks are calculated based on your individual earnings history, not your place of residence.
Benefits
If you’re looking to increase your Social Security payments, there are several strategies you can employ long before you retire. The key to maximizing your benefits lies in long-term planning and smart decision-making regarding your work and retirement age.
Work for at Least 35 Years
Social Security benefits are calculated based on your 35 highest-earning years. If you work fewer than 35 years, years without earnings will be factored in as zeroes, which can lower your benefit amount. To maximize your benefits, it’s important to work for at least 35 years, as doing so will ensure that you avoid having lower- or zero-earning years factored into your benefits calculation.
If you continue to work past 35 years, your lower-earning years will be replaced with higher-earning ones, potentially increasing your overall benefit amount.
Maximize Your Earnings
The more you earn—and the more Social Security taxes you pay during your working years—the higher your monthly benefits will be. If possible, aim to maximize your earnings while staying under the $168,600 maximum taxable earnings limit for 2024. This ensures you’re contributing the maximum amount to Social Security and, in turn, will receive the highest possible benefits in retirement.
Workers in states with higher median incomes, like New Jersey and Connecticut, tend to see higher Social Security benefits due to their higher earnings during their working years.
Claim Benefits
One of the most important decisions you’ll make regarding Social Security is when to claim your benefits. The age at which you begin collecting Social Security can have a huge impact on the size of your monthly checks.
- Claiming early (before your full retirement age, or FRA) will reduce your monthly payments by up to 30%.
- Delaying your benefits beyond your FRA can increase your payments by up to 32%, with the maximum benefit increase occurring if you wait until age 70.
Choosing the right time to claim Social Security depends on your personal financial situation and life expectancy. If you’re in good health and can afford to wait, delaying your benefits may be a smart move to maximize your monthly income.
While Social Security benefits vary across states, individuals in certain locations can expect to receive higher payments, particularly in states with higher median incomes. However, the most important factor in determining your Social Security check is your personal earnings history and the age at which you choose to claim benefits. By working for at least 35 years, maximizing your earnings, and carefully considering when to retire, you can significantly increase your monthly Social Security checks and enjoy a more secure retirement.
FAQs
What is the average Social Security payment in 2023?
The average monthly payment is around $1,900, though it varies by individual earnings.
Which state offers the highest median Social Security payment?
New Jersey, with a median payment of $2,100 per month.
Does moving to a different state affect Social Security payments?
No, Social Security payments are based on your earnings history, not your state of residence.
How can I maximize my Social Security benefits?
Work for at least 35 years, maximize earnings, and delay benefits until age 70 if possible.
What happens if I claim Social Security before my full retirement age?
Your monthly benefits will be reduced by up to 30% if you claim before your full retirement age.
