In the US, not everyone gets the same amount of Social Security. There are seniors who get more than $24,000 a year, and there are others who have to settle for much less.
This difference comes from a number of personal traits and, in many cases, where people live. We’ll talk about the states with the biggest average payments and give you some tips on how to get the most out of your benefits no matter where you live.
Variation in Social Security payments by state
There are many things that can change your Social Security income, but where you live is not one of them. In other words, living in a certain state doesn’t immediately mean that your checks will be higher or lower. The average amount earned in each state does change, and that amount is based on the work history and earnings of the people who live there.
Connecticut, New Jersey, Delaware, New Hampshire, Maryland, Washington, Minnesota, Michigan, Massachusetts, and Utah were the places where retirees were getting the biggest Social Security checks as of December 2022.
It’s important to remember, though, that this doesn’t mean that every retiree in these places is getting a big check. There are people who get less than the average and people who live in different states who might get more than the average for those places.
What determines the amount of Social Security benefits?
The amount of Social Security you get is based on how much you worked and the rules set by the Social Security Administration (SSA). It has nothing to do with where you live.
These benefits are based on how much money you’ve made over your career, taking inflation into account. The amount of your income is also affected by things like how long you’ve worked and how old you are when you decide to start getting benefits.
You won’t automatically get a bigger check just because you move to a place where the average benefit amount is higher. It’s better to focus on tactics that can help you make more money over time if you want to increase your benefits.
States with the highest Social Security payments
Take a look at the ten places where retirees get the most money from Social Security and why. Keep in mind that these are just averages; your own amount may be different based on your work history and when you claim your benefits.
- Connecticut
- New Jersey
- Delaware
- New Hampshire
- Maryland
- Washington
- Minnesota
- Michigan
- Massachusetts
- Utah
Strategies to maximize your Social Security benefits
You can’t change the average pay in your state, but you can use some techniques to make sure you get the most money possible based on your work history. Here are three important things you can do to get the most out of your Social Security payments.
Work at least 35 years
The SSA figures out how much you will get in Social Security payments based on the 35 years when you made the most money. If you work less than 35 years, the years you don’t make any money are called “zero-income years,” and they will lower the average that is used to figure out your benefit.
So, working for at least 35 years is important so that years when you don’t make any money don’t lower your future payments. If you work longer than 35 years, the years when you didn’t make as much money will be replaced by years when you did. This can make your total pay go up. This plan works especially well if your income has gone up over the course of your job.
Boost your earnings during your working years
The amount of money you get from each Social Security check is based on how much money you made while you were working, as long as that money was taxed by Social Security. One reason why states with higher median household incomes tend to have higher payments is because of this.
As long as your income doesn’t go over the taxable limit, making more money while you’re working will help you get higher Social Security payments. This amount is capped at $168,600 in 2024.
Even though making more than this amount is good for your finances, it won’t raise your Social Security check because income over this amount isn’t taxed by Social Security.
Choose the right age to claim your benefits
Your monthly payments will change a lot depending on what age you choose to start getting benefits. Every person has a full retirement age (FRA) that is based on the year they were born. This age is between 66 and 67 for most people today.
If you choose to claim your benefits before your FRA, your payments will go down for good. In fact, you might get up to 30% less if you start getting benefits at age 62, which is the oldest age you can do so.
If you wait past your FRA to start getting benefits, on the other hand, you can see your monthly payments go up by up to 32%. The biggest increase happens when you wait until age 70.
Deciding when to claim your benefits
When you decide to start getting benefits should depend on how much money you have and how long you think you will live. If you need the money quickly or are having health problems, filing before your FRA might be the best choice. If you’re healthy enough and have the money to wait, though, waiting until you turn 70 can mean a bigger monthly check.
In the end, no matter where you live, you can get the most out of your Social Security benefits if you know what affects them and use the right tactics.
Moving to a state with higher average payments might seem like a quick fix, but the things that will really change the size of your monthly checks are your work history, picking the right time to claim, and working longer.
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