Here's the Average Social Security Benefit for Retired Workers and Spouses

Social Security retirement benefits are available for retired workers and the spouses of retired workers, even if those spouses have no work history.

There are certain similarities between the two benefit types. For instance, the age of eligibility is 62 in both cases, and claiming either type of benefit before full retirement age results in a permanently reduced payout.

There are also important differences that future recipients should understand. Namely, retired-worker benefits are calculated differently than spousal benefits, and the average payouts differ dramatically. Read on to learn more.

Image source: Getty Images.

The average Social Security benefit for retired workers: $1,918.28 per month

Social Security benefits for retired workers are based on lifetime earnings and claiming age . The Social Security Administration calculates the payout for each worker when they turn 62, the age of entitlement. But the payout is adjusted annually to account for changes in income and inflation.

The four-step process below explains how retired-worker benefits are calculated:

• Step 1: Earnings is indexed (adjusted for inflation) to ensure benefits accurately reflect changes in living standard that occurred during a worker's career.
• Step 2: Indexed earnings from the 35 highest-paid years of work are converted to a monthly average called the average indexed monthly earnings (AIME) amount.
• Step 3: A formula is applied to the AIME to determine the primary insurance amount (PIA), which is the benefit a worker will receive if they claim Social Security at full retirement age (FRA).
• Step 4: The PIA is adjusted for early or delayed retirement. Workers that claim Social Security before FRA get a smaller benefit, meaning less than 100% of their PIA. Workers that claim Social Security after FRA get a bigger benefit, meaning more than 100% of their PIA.

There are two limitations to step four. First, Social Security cannot start earlier than 62, so that is the age at which the benefit reduction is most severe. Second, delayed retirement credits stop accumulating at age 70, so it never makes sense to claim any later.

The chart below shows how birth year correlates with FRA. It also shows the retired-worker benefit (as a percentage of PIA) for individuals in each group if they claim at ages 62 and 70.

Data source: Social Security Administration.

The average retired-worker benefit was $1,918.28 in June 2024, which is $23,019.36 per year. That figure includes retirees of all ages and incomes. That makes it useful to retirees who want to benchmark their benefit against the average, but it's not very useful to workers who are curious about their future benefit.

Fortunately, workers can get a personalized estimate of their future benefit by creating a my Social Security account with the Social Security Administration.

The average Social Security benefit for spouses: $910.95 per month

Spouses with no employment history can claim Social Security on the work record of their retired partner, provided three conditions are satisfied. The couple must have been married for at least one year, the spouse must be at least age 62, and the partner must be receiving Social Security benefits. Divorced spouses may also be eligible, provided they were married to their ex-partner for at least 10 years and they have not remarried.

Spousal benefits depend on the claiming age of the spouse, and the lifetime earnings of their retired partner. When spouses claim Social Security at FRA, the spousal benefit will equal 50% of the retired partner's PIA. But when spouses claim Social Security before FRA, they get a smaller benefit, meaning less than 50% of the retired partner's PIA. In this case, there is no advantage to claiming Social Security after FRA. Spouses cannot earn delayed retirement credits.

The chart below shows the benefit (as a percentage of the retired partner's PIA) for spouses that claim Social Security at age 62. In other words, it shows the smallest possible payout for spouses in each group.

Source: Social Security Administration.

The average Social Security benefit for spouses of retired workers was $910.95 per month in June 2024, which is $10,931.40 per year. That figure is a useful benchmark for current beneficiaries, but it's a poor forecasting tool. The easiest way for spouses to estimate their future benefit is to review their partner's estimated PIA, which is available under the "Plan for Retirement" section within the partner's my Social Security account.

The Motley Fool has a disclosure policy .