If you’re thinking about retirement and wondering how much money you’ll get each month, you’re not alone. The amount the Social Security Administration (SSA) gives you depends heavily on the age you choose to retire, along with your past income and how long you worked. Deciding when to retire can change your monthly income by thousands of dollars—so it’s important to plan wisely.
What Is Social Security and How Does It Work?
Social Security is a U.S. federal program that pays monthly benefits to retired workers, people with disabilities, and their families. The amount you receive is based on your average indexed monthly earnings (AIME) from your 35 highest-paid years.
These earnings are adjusted for inflation, and from them, your primary insurance amount (PIA) is calculated. The PIA is the base amount that determines your monthly pension.
Retirement Age vs. Benefit Amount: What You Need to Know
You can start receiving Social Security as early as age 62, but the earlier you retire, the less you get. The monthly amount goes up the longer you wait to retire, with the highest benefit available at age 70. Here’s a look at the maximum monthly payments in 2025:
- At 62 years old (minimum age to retire): $2,831 per month
- At 67 years old (full retirement age for people born in 1960 or later): $4,018 per month
- At 70 years old (maximum benefit age): $5,108 per month
So, retiring at 62 means you could lose up to 30% compared to what you’d get at age 70.
:max_bytes(150000):strip_icc()/GettyImages-1465621717-5f131bf876c043898c13e6c471acf50f.jpg)
Can You Boost Your Social Security Payments?
Yes, and here’s how:
Keep Working Beyond 35 Years
The SSA looks at your 35 best-earning years. If you work more than that and have higher earnings in your later years, those replace the lower-earning years, which increases your average and boosts your pension.
Delay Your Retirement
Waiting until age 70 maximizes your benefits. After 70, your monthly check doesn’t increase anymore, even if you keep working.
Earn Within the Limit
In 2025, the SSA considers only the first $176,100 of your annual income. If you earn more, the extra income won’t count toward your Social Security calculation.
Cost-of-Living Adjustments (COLA): What’s New in 2025?
Every year, Social Security benefits go up slightly to match inflation, so your payments can keep up with rising prices. This is known as the Cost-of-Living Adjustment (COLA).
For 2025, the SSA applied a 2.5% COLA, increasing the average monthly benefit to $1,976 for retired workers. This helps protect your income from losing value over time.