How much pension can you receive after retirement?

As you prepare for your golden years and retirement, it's important to understand how your pension is calculated, how much you'll receive each month, and the factors that may affect your payout. With this knowledge, you can ensure your overall retirement plan fits your lifestyle and financial needs.

How much pension can I receive?

The total pension will vary from person to person as it depends on your personal circumstances. There are four key factors that influence how your monthly pension is calculated: your year of birth, age at which you receive it, your income history and your work history.

Factors That Affect How Much Social Security You Receive

Year of Birth

At age 62, you can begin collecting a partial pension. However, to receive 100% of the benefit you're eligible to receive, you must reach full retirement age, which is determined by your year of birth. Currently, the full retirement age for people born between 1943 and 1954 is 66. People born between 1955 and 1959 reach 100% after 66 plus a certain number of months. For example, if you were born in 1957, your full retirement age is 66 years and six months. For people born in 1960 and later, full retirement age and 100% eligibility is 67.

Claiming Age

When you decide to claim your pension will greatly affect how much money you'll receive. As mentioned above, you can start claiming Social Security as early as age 62. However, you'll receive a reduced benefit instead of 100%. If you choose to wait until full retirement age to claim your pension, you'll receive 100% of the benefit. Delaying retirement until age 70 (the age at which benefits are capped) will increase your monthly payment by more than 100%.

Earnings History

The more you earn during your career, the more you pay in U.S. federal payroll taxes, known as the Federal Insurance Contributions Act (FICA). FICA helps fund the Social Security and Medicare programs.

Work History

Your average Social Security benefit is based on your top 35 years of earning. Years spent away from the workforce are counted as zero, affecting your average benefit. Examples of "zero years" include time spent raising a family, caring for a spouse or parent, or being unemployed.

What is the average Social Security contribution?

Average Social Security Contribution

According to the Social Security Administration (SSA), the average monthly Social Security benefit in 2024 is projected to be:

【Data Source：https://www.ssa.gov/prepare/plan-retirement】