Social Security calculates your monthly retirement benefits based on your taxable income over the course of your career. They tally up to 35 years of income data, and if you worked more than 35 years, they use your 35 highest earning years (indexed for inflation).\u00a0<\/p>\n
So how does a $100,000 earner\u2019s monthly check compare to the average American\u2019s?<\/p>\n
Discover More: I\u2019m a Financial Advisor — Here\u2019s How Often You Should Check Your Retirement Account Balance<\/a><\/p>\n For You: 9 Subtly Genius Things All Wealthy People Do With Their Money \u2014 That You Should Do, Too<\/a><\/p>\n The Average American\u2019s Benefit<\/p>\n Every month, the Social Security Administration<\/a> (SSA) releases data on the average benefits. As of May (the most recent available), the SSA paid an average retirement benefit of $2,082.76.\u00a0<\/p>\n Alternatively, take the median personal income for year-round, full-time workers: $63,360, according to the Census Bureau<\/a>. Plug that into the SSA<\/a> quick calculator as the 2026 income, with retirement scheduled for the end of 2026 for a 67-year-old worker. Note that 67 is the new full retirement age for Americans born in 1960 and later.\u00a0<\/p>\n If that worker\u2019s income rose at the same rate as the average American\u2019s over the course of their career, they would receive a monthly benefit of $2,326.\u00a0<\/p>\n Benefits for a $100K Earner<\/p>\n Take the same worker who will turn 67 at the end of 2026 and plans to start taking benefits at full retirement age. If they earned $100,000 in their last year of work (2026), and their previous income simply grew at the average rate, they would receive a monthly benefit of $3,205.\u00a0<\/p>\n That\u2019s 38% higher than the benefit calculated at a $63,360 income, and 54% higher than the current average monthly benefit of nearly $2,083.\u00a0<\/p>\n What You Can Afford<\/p>\n Imagine a worker who plans for Social Security benefits to make up half of their retirement income. For the $100,000 earner<\/a> who will collect $3,205 in benefits starting at 67, that comes to a monthly budget<\/a> of $6,410, compared to the average beneficiary who would live on $4,166.\u00a0<\/p>\n That $2,244 difference in monthly living expenses can make a huge impact on quality of life. It\u2019s a mortgage payment<\/a>, or significant annual travel. Dinners out, more hobbies, more flexibility to help your grown children or grandkids.\u00a0<\/p>\n If you borrowed a mortgage where the principal and interest made up 28% of your monthly income, it\u2019s the difference between a $1,166 monthly payment and a $1,795 payment. At a 6% interest rate, that\u2019s roughly the difference between a $190,000 mortgage and a $300,000 mortgage. Play around with the numbers on MortgageCalculator.org<\/a>.\u00a0<\/p>\n Ways To Boost Your Benefits<\/p>\n Want higher benefits? Wait a few extra years to retire.\u00a0<\/p>\n Running the same numbers for a worker earning $100,000 this year but who will wait until turning 70 in 2029 before taking benefits, they can expect to collect $4,011 in monthly benefits. That’s nearly double the average monthly benefit paid currently, and a huge leap up from the $3,205 calculated for a 67-year-old.\u00a0<\/p>\n If you continue to work, you also add more high-income years to the calculation of your benefit. That can raise your benefit amount, skewing your average career earnings higher.\u00a0<\/p>\n If you\u2019re further out from retirement, earning more will help boost your eventual benefits. Look for opportunities to lift your income, such as raises and side hustles<\/a>.\u00a0<\/p>\n Finally, remember that Social Security benefits are only designed to replace around 40% of your income. If you want a comfortable retirement, save <\/a>and invest more, so that you rely less heavily on benefits in retirement.\u00a0<\/p>\n