Here are the average and maximum Social Security benefits each year since 2014

Nearly 68 million U.S. adults will receive a Social Security check in 2024, and the benefits are a significant source of income among retirees. In fact, 37 percent of men and 42 percent of women rely on their paychecks for at least half of their retirement income, according to 2024 data from the Social Security Administration.

While the program is a lifeline for millions of older adults, Social Security has changed a lot over the past decade. Average payouts have increased substantially, but that’s not necessarily enough to solve the challenges facing the program.

Here’s how average and maximum benefit amounts have changed since 2014 — as well as some not-so-good news about the future of Social Security.

Image source: Getty Images.

Retirees collect bigger checks

As wages and the general cost of living continue to rise, it’s no surprise that Social Security payments have also increased over the past decade.

Several factors influence benefit amounts, so your payment is unique to your career history. Your benefit is based on your salary over the 35 years of your highest earning career. The age you start claiming will also have a direct impact on your benefit, as the longer you wait to claim, the more you will receive each month.

To get the maximum benefit, you’ll need to work at least 35 full years while consistently reaching the maximum taxable earnings limit — which is the highest income subject to Social Security taxes.

As of 2014, this is the average benefit amount among retirees, as well as the maximum possible benefit for someone filing a Social Security claim at full retirement age:

Source: Social Security Administration. Table by author.

More recently, average and maximum benefits have increased substantially year over year. This may be due in part to rising inflation and higher-than-average cost-of-living adjustments that result in larger benefit increases.

It’s bad news for retirees

Despite much higher average and maximum payments in 2024 compared to 2014, current retirees may not actually be better off financially.

Retirees can collect bigger checks, but those payments don’t go as far as they used to. In fact, benefits have lost 20 percent of their purchasing power since 2010, according to a 2024 report by the nonprofit group The Senior Citizens League.

The study also found that to maintain the same purchasing power as in 2010, today’s average retiree would need $370 more per month. Finally, in eight of the past 15 years, the inflation rate has exceeded the cost of living adjustment (COLA) for that year.

In other words, even though retirees have received higher-than-average COLAs in recent years, leading to higher average benefits, Social Security still can’t keep up with rising costs. If this trend continues, retirees may find it harder to rely on their benefits for decades to come — even as their checks get bigger every year.

Social Security can go a long way toward retirement. While it’s good news that benefits are increasing year-on-year, the loss of purchasing power will sting many retirees. While there may not be much you can do to prevent this, being informed can help you make the best choices for your retirement.