This was the average Social Security benefit in 2004, and here’s what it is now

Social Security is a constant for millions of older adults. Once you claim benefits, you will receive a monthly payment for the rest of your life.

But the program is not the same today as it was in the past, and a lot has changed in the last 20 years. Today’s average worker gets paid a lot more per month than they did in 2004, but there are also some major challenges affecting the program.

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In 2004, the average retiree collected $955 per month, according to historical data from the Social Security Administration. Beginning in July 2024, the average benefit increased to $1,919 per month among retired workers.

Other figures, such as the maximum benefit amount, have also changed. In 2004, people filing at their full retirement age could earn a maximum of $1,825 per month. Today, the maximum benefit at age 67 is $3,911 per month.

On the surface, it may appear that today’s retirees are much better off financially. However, while beneficiaries receive more money per month, these benefits do not go as far.

Since 2010 alone, Social Security has lost 20 percent of its purchasing power, according to a 2024 report by the Senior Citizens League. Also, while annual cost-of-living adjustments (COLAs) are designed to help benefits keep up with inflation, 8 of the last 15 COLAs fell below the inflation rate for that year, the study found.

There’s nothing wrong with relying on Social Security in retirement, but it’s wise to keep expectations in check. When you know how far your benefits will go (and know that your payments may continue to lose purchasing power in the future), you can take steps to better protect your retirement.