What is the typical Social Security payment at age 65? How does your amount stack up?

Main Insights

• At 65, the typical monthly Social Security benefit is $1,583, with men averaging $1,756 and women receiving about $1,426.

• People aged 65 to 69 have an average 401(k) balance of $252,800, which translates to approximately $800 per month if following the 4% withdrawal guideline.

• Combining Social Security and 401(k) withdrawals, retirees generally have around $2,400 each month—an amount that may not be sufficient, especially in expensive regions, without extra income or support.

• Strategies such as moving to a smaller home, relocating, working part-time, or utilizing a reverse mortgage can help retirees make their savings last longer.

For many individuals turning 65, retirement income is a blend of Social Security and personal savings. The average Social Security payment at this age is $1,583 per month, but this alone rarely covers all living costs. Social Security is intended as a financial safety net, not a full replacement for employment income, so most retirees must budget carefully and make difficult choices to maintain their standard of living.

Below, we explore what the average 65-year-old receives from Social Security and what this means for retirement planning.

Typical Social Security Benefits at Age 65

According to the Social Security Administration, people who are 65 receive an average monthly benefit of $1,583. Men tend to receive more, averaging $1,756, while women typically get $1,426.

It’s important to remember that full Social Security retirement benefits are not available at 65. While benefits can begin as early as age 62, starting early results in reduced payments. Full retirement age is 67 for those born in 1960 or later. At 65, retirees receive about 86.7% of their full benefit, with the average retired worker’s full benefit being $1,976 per month.

Most retirees will need to supplement Social Security with other sources of income. As senior wealth advisor Scott McClatchey notes, Social Security alone is usually not enough to cover all expenses, making it essential to have additional savings or income streams.

Average 401(k) Savings at 65

Ideally, consistent saving over the years will have grown your retirement account. Data from Fidelity shows that people between 65 and 69 have an average 401(k) balance of $252,800. Following the 4% withdrawal rule, this provides about $10,100 in the first year of retirement, or roughly $800 per month.

What Does This Mean for Retirees?

With a combined monthly income of about $2,400 from Social Security and 401(k) withdrawals, many retirees find themselves financially stretched. As Justin Pritchard, a Certified Financial Planner, points out, this amount may suffice in areas with a lower cost of living, but it can be challenging elsewhere, especially if unexpected expenses arise.

In regions where living expenses are higher, retirees often face greater financial pressure. Daniel E. Milks, managing partner at Fiduciary Organization, emphasizes that Social Security was only ever intended as a safety net. Relying on it as the main or sole source of income can lead to financial hardship.

Milks suggests that retirees review their spending closely, especially on housing and healthcare, which typically make up the largest share of expenses. Downsizing or moving to a less expensive area are options to consider.

Another strategy is to delay claiming Social Security until age 70, which allows retirees to receive the maximum possible benefit due to delayed retirement credits. Additionally, retirees might look into part-time work, reverse mortgages, or other ways to manage income during retirement.

Conclusion

At age 65, the combination of Social Security and average 401(k) savings often leaves retirees with limited financial flexibility. While some can manage in areas with lower costs, others may need to make significant adjustments, such as reducing spending, moving, or seeking additional income.

As Milks advises, the best approach is to start planning early and review your finances regularly. For those already retired, making informed decisions about spending and maximizing available benefits is crucial.