Social Security benefits form a crucial financial lifeline for retirees in the United States, but the amount people receive may vary widely. A recent survey by Bankrate found that 77% of current retirees rely on Social Security income cover their basic expenses, highlighting its crucial role in retirement planning.
Meanwhile, more than half of Americans who haven’t retired yet say they expect to rely on Social Security benefits to pay their necessary expenses once they exit the workforce, according to Bankrate’s new Social Security Survey.
Which US states receives the most and least retirement pay?
In Connecticut, retirees receive the highest average social security payment in the country, at about $2,114 a month, according to the latest available Social Security Administration data. On the other hand, beneficiaries in Mississippi receive the lowest average monthly benefit, at roughly $1,756 a month, CNBC reported citing official data.
However, averages do no always reflect what beneficiaries actually receive. In some states, a small group pf retirees with particularly high or low payments can skew the average.
For instance, in Alaska and New Mexico, the average retiree benefit is more than $100 higher than each state’s median payment, suggesting that the median figure may better represent the typical social security income of retirees in those states.
What factors determine your social security payment?
Several factors influence how much a person receives in social security benefits. These include:
- How long you work in jobs that paid social security taxes, including income earned through self-employment.
- Your total earnings during those working years, since higher lifetime income generally results in higher benefits
- The age at which you choose to start claiming benefits
Among these, the factor individuals typically have the most control over is the age at which they begin collecting benefits, as delaying claims can often increase the monthly payment amount.
Here’s a list on the average and median monthly payments retirees receive from social security in every US state:
