The estimated average monthly benefit for "all retired workers" in 2016 is $1,341. Social Security benefits are calculated by combining your 35 highest-paid working year.  Once all wages have been indexed and adjusted for inflation, the Average Indexed Monthly Earnings (AIME), is computed by dividing the sum of all indexed wages by 420 (35 years of months). 

The age at which you retire can affect your benefit amount greatly. If you retire at age 66 in 2016, your maximum monthly benefit could be $2,639. However, if you don't start collecting benefits until age 67 or older, you will likely be granted credits towards your deferred benefit.  In 2016, deferring social security benefits can result in an additional 8% per year increase up to age 70.  This means that if you elect to collect Social Security at age 69 in 2016, your benefits will be 24% higher than had you began drawing your Social Security income at full retirement age (66). 

Want to collect benefits before your full retirement age?  Click on the story below and learn how much money you may be leaving on the table.