Social Security benefits are a vital financial lifeline for retirees in the United States, but the amount people receive can vary widely. A recent Bankrate survey found that 77% of current retirees rely on Social Security income to cover their essential expenses, highlighting its critical role in retirement planning.
Meanwhile, more than half of Americans who have not yet retired say they expect to rely on Social Security benefits to pay for their necessary expenses once they leave the workforce, according to a new Bankrate Social Security survey.
Which US states receive the largest and smallest pension?
In Connecticut, retirees receive the highest average Social Security payment in the nation, 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 about $1,756 a month, CNBC reported, citing official data.
However, averages do not always reflect what recipients actually receive. In some states, a small group of retirees with particularly high or low payments can skew the average.
For example, in Alaska and New Mexico, the average retiree benefit is more than $100 higher than each state’s median payment, suggesting that the median may better represent the typical income of Social Security retirees in those states.
What Factors Determine Your Social Security Payment?
Several factors affect the amount of Social Security benefits. These include:
- How long you’ve worked in jobs that paid Social Security taxes, including self-employment income.
- Your total earnings during these working years, as higher lifetime earnings generally result in higher benefits
- The age at which you decide to start claiming benefits
Among these factors, individuals typically have the most control over the age at which they begin receiving benefits, as delaying claims can often increase the amount of a monthly payment.
Here is a list of the average and median monthly payments that retirees receive from Social Security in each US state:
