Millions of beneficiaries and retirees in the USA rely on Social Security as a source of monthly income. According to the Social Security Administration, the average Social Security retirement benefit stands at $1,948.17, which is about $23,380 per year as of May 2025. Most retirees use this amount to purchase commodities and pay for services they need every day.
What Can $1,948.17 Buy You?
If you rely on Social Security alone, the average monthly check of $1,978.17 can cover the following essentials:
- Rent for a two-bedroom apartment: $1,356
- Groceries per person: $275
- Medicare Part B premium: $185
- Utilities: $164
- Transportation: $1,098
Given the estimated cost of the above essentials, it is clear that the average monthly benefit can barely cover all these expenses. Most retirees supplement the monthly benefit with savings or part-time work. Others who have no additional sources of income find it difficult to stretch this check across 30 days, given the rising costs of essentials like medical bills.
The Impact of Claiming Retirement Benefits Early or Waiting
The time you claim your benefits can break or make your retirement plan. You can start receiving your Social Security retirement benefits as early as age 62. However, you are only entitled to full benefits when you reach your full retirement age, which is 67. However, you can reap more benefits if you wait until 70. Here are the benefits you receive depending on the age you claim your retirement benefits:
- Claim at 62: ~$1,364
- Claim at 67: $1,948
- Claim at 70: ~$2,416
From the above figures, you can get an additional $1,000 if you wait until 70 to claim your retirement benefits.
New Social Security Rules You Should Be Aware Of
The repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset in January 2025, thanks to the Social Security Fairness Act, could see some retirees receive larger benefits. These retirees are those who worked in the public sector as teachers and firefighters, and they could be eligible for retroactive back pay dating back to January 2024.
What to Expect from the 2026 COLA
In 2025, Social Security recipients received some additional benefits because of the 2.5% cost-of-living adjustment (COLA). Early forecasts suggest that 2026 could see a 2.3% COLA, which adds about $45 per month for the average recipient. Although it’s not a huge increase, most retirees are happy with it because it increases their purchasing power, enabling them to purchase essentials such as food, housing, and healthcare.
What to Do to Stretch Your Check Further
Whether you are already in retirement or planning, here are smart ways to stretch your Social Security check.
- Delay claiming your retirement benefits because it earns you more every year.
- Coordinate with a spouse and get spousal benefits, which are additional income.
- Watch the earning limit if you are working before full retirement age, because in 2025, earning more than $23,400 could reduce your benefits at least temporarily.
The average Social Security benefit is $1,948.17, and it is barely enough to cover all monthly expenses for most retirees. Most have to rely on other sources of income to supplement their Social Security benefits.
It is important to know how benefits are calculated as you plan for your retirement so that you can optimize your claiming strategy. Additionally, it is important to keep up to date with upcoming changes, such as rule repeals and COLA increases, to be able to budget your retirement income.