Social Security Benefits: Average and Median Payments in Each U.S. State

Depending on your work history and overall savings, Social Security benefits could play a vital role in your retirement plan.

According to a recent Bankrate survey, 77% of current U.S. retirees depend on Social Security to cover their basic expenses—but the amount they receive can vary widely.

In Connecticut, retirement beneficiaries receive the highest average Social Security payment in the nation at $2,114 per month, according to the latest data from the Social Security Administration. Meanwhile, Mississippi has the lowest average monthly benefit at $1,756.

It’s important to recognize that averages can be misleading, especially when a small number of individuals receive significantly more or less than most others. In states like Alaska and New Mexico, for instance, the average retirement benefit exceeds the median by over $100, suggesting that the median more accurately reflects the typical retiree’s experience in those states.
 

 
While average Social Security payments can provide a general idea of benefits in your state, your personal monthly retirement benefit depends on three key factors:

•  How long you worked in jobs that paid into Social Security (including self-employment)
• How much you earned during those years
• The age at which you choose to start receiving benefits

One of the biggest factors you can control when it comes to Social Security benefits is the age at which you begin collecting them.

For Americans born in 1960 or later, full retirement age is 67. However, you can choose to start receiving benefits as early as age 62. Keep in mind, though, that claiming early can reduce your monthly benefit by as much as 30%, depending on how many months before your full retirement age you begin. This reduction is permanent and based on Social Security Administration guidelines.

You also have the option to delay collecting Social Security benefits until age 70. By doing so, your monthly payments increase by about 8% for each year you wait past your full retirement age, up to age 70.

For example, someone who began working at age 22 and chose to start benefits at 62 might receive around $2,830 per month. But if that same person waited until age 70 to claim benefits, their monthly payment could exceed $5,000, based on data from the Social Security Administration.