
- Social Security benefits for retirees grew by an average of 2.54% every year over the last three decades.
- If this growth continues, the average Social Security benefit for retirees will grow to $US2,318.89 per month by 2038.
- However, that amount will be offset by a higher cost of living.
For many American retirees, paying their monthly bills is possible because of their Social Security retirement benefits – but the program’s future isn’t exactly clear.
Several factors will determine what happens to Social Security benefits going forward. The US has an ageing population with many people nearing retirement age. Combined with longer life spans and fewer workers contributing to Social Security, retirement funds may feel a crunch in the future.
As it stands now, the Social Security Administration makes a cost of living adjustment to increase retirement benefits by a certain amount every year. Over the past 30 years, from 1989 to 2018, the average cost of living adjustment was 2.54%. But not every year sees the same increase. Social Security benefits increased by 2.0% in 2018, 0% in 2016, and 3.6% in 2012.
Business Insider calculated what Social Security benefits could look like in 20 years if this trend continues. Using the 2.54% average cost of living adjustment, the typical retiree could expect to receive a monthly check worth $US2,318.89 in 2038. Currently, the average monthly retirement benefit is $US1,404.15.
While that may sound like a more reasonable amount, don’t change your retirement plans just yet. The increase in retirement benefits will be nominal because overall cost of living will increase at the same rate. Meaning, the benefits retirees receive in 20 years will be worth about the same amount as they are now, in terms of spending power.
Below, see the average Social Security retirement benefit in 2018 compared to the estimated benefit 20 years from now for every state and Washington DC, ranked from the lowest to the highest.
51. Louisiana
Average Social Security benefits in 2018:$US1,311.72
Estimated Social Security benefits in 2038:$US2,166.24
50. Maine
Average Social Security benefits in 2018:$US1,314.22
Estimated Social Security benefits in 2038:$US2,170.37
49. Mississippi
Average Social Security benefits in 2018:$US1,319.06
Estimated Social Security benefits in 2038:$US2,178.37
48. New Mexico
Average Social Security benefits in 2018:$US1,323.16
Estimated Social Security benefits in 2038:$US2,185.14
47. Montana
Average Social Security benefits in 2018:$US1,331.30
Estimated Social Security benefits in 2038:$US2,198.58
46. Arkansas
Average Social Security benefits in 2018:$US1,333.93
Estimated Social Security benefits in 2038:$US2,202.93
45. South Dakota
Average Social Security benefits in 2018:$US1,336.28
Estimated Social Security benefits in 2038:$US2,206.80
44. Kentucky
Average Social Security benefits in 2018:$US1,340.30
Estimated Social Security benefits in 2038:$US2,213.45
43. Washington, DC
Average Social Security benefits in 2018:$US1,342.98
Estimated Social Security benefits in 2038:$US2,217.87
42. Alaska
Average Social Security benefits in 2018:$US1,343.39
Estimated Social Security benefits in 2038:$US2,218.55
41. North Dakota
Average Social Security benefits in 2018:$US1,344.48
Estimated Social Security benefits in 2038:$US2,220.35
40. Oklahoma
Average Social Security benefits in 2018:$US1,368.52
Estimated Social Security benefits in 2038:$US2,260.05
39. Idaho
Average Social Security benefits in 2018:$US1,370.97
Estimated Social Security benefits in 2038:$US2,264.09
38. Texas
Average Social Security benefits in 2018:$US1,375.08
Estimated Social Security benefits in 2038:$US2,270.88
37. California
Average Social Security benefits in 2018:$US1,377.54
Estimated Social Security benefits in 2038:$US2,274.94
36. Nevada
Average Social Security benefits in 2018:$US1,378.14
Estimated Social Security benefits in 2038:$US2,275.93
35. Alabama
Average Social Security benefits in 2018:$US1,379.92
Estimated Social Security benefits in 2038:$US2,278.88
34. Georgia
Average Social Security benefits in 2018:$US1,382.27
Estimated Social Security benefits in 2038:$US2,282.75
33. Missouri
Average Social Security benefits in 2018:$US1,384.10
Estimated Social Security benefits in 2038:$US2,285.77
32. West Virginia
Average Social Security benefits in 2018:$US1,384.50
Estimated Social Security benefits in 2038:$US2,286.43
31. Ohio
Average Social Security benefits in 2018:$US1,385.60
Estimated Social Security benefits in 2038:$US2,288.25
30. Hawaii
Average Social Security benefits in 2018:$US1,391.79
Estimated Social Security benefits in 2038:$US2,298.48
29. Tennessee
Average Social Security benefits in 2018:$US1,393.61
Estimated Social Security benefits in 2038:$US2,301.48
28. Florida
Average Social Security benefits in 2018:$US1,395.31
Estimated Social Security benefits in 2038:$US2,304.30
27. North Carolina
Average Social Security benefits in 2018:$US1,404.91
Estimated Social Security benefits in 2038:$US2,320.14
26. Oregon
Average Social Security benefits in 2018:$US1,406.20
Estimated Social Security benefits in 2038:$US2,322.28
25. Nebraska
Average Social Security benefits in 2018:$US1,406.96
Estimated Social Security benefits in 2038:$US2,323.53
24. Colorado
Average Social Security benefits in 2018:$US1,407.49
Estimated Social Security benefits in 2038:$US2,324.56
23. Iowa
Average Social Security benefits in 2018:$US1408.79
Estimated Social Security benefits in 2038:$US2,326.55
22. South Carolina
Average Social Security benefits in 2018:$US1,416.91
Estimated Social Security benefits in 2038:$US2,339.96
21. Vermont
Average Social Security benefits in 2018:$US1,419.44
Estimated Social Security benefits in 2038:$US2,344.15
20. Wyoming
Average Social Security benefits in 2018:$US1,426.58
Estimated Social Security benefits in 2038:$US2,355.93
19. Rhode Island
Average Social Security benefits in 2018:$US1,430.63
Estimated Social Security benefits in 2038:$US2,362.62
18. Arizona
Average Social Security benefits in 2018:$US1,432.72
Estimated Social Security benefits in 2038:$US2,366.07
17. Illinois
Average Social Security benefits in 2018:$US1,434.34
Estimated Social Security benefits in 2038:$US2,368.74
16. Utah
Average Social Security benefits in 2018:$US1,437.30
Estimated Social Security benefits in 2038:$US2,373.63
15. Wisconsin
Average Social Security benefits in 2018:$US1,443.26
Estimated Social Security benefits in 2038:$US2,383.48
14. Virginia
Average Social Security benefits in 2018:$US1,444.06
Estimated Social Security benefits in 2038:$US2,384.80
13. Massachusetts
Average Social Security benefits in 2018:$US1,444.36
Estimated Social Security benefits in 2038:$US2,385.29
12. Kansas
Average Social Security benefits in 2018:$US1,450.99
Estimated Social Security benefits in 2038:$US2,396.25
11. Pennsylvania
Average Social Security benefits in 2018:$US1,454.99
Estimated Social Security benefits in 2038:$US2,402.86
10. Minnesota
Average Social Security benefits in 2018:$US1,457.22
Estimated Social Security benefits in 2038:$US2,406.53
9. New York
Average Social Security benefits in 2018:$US1,458.19
Estimated Social Security benefits in 2038:$US2,408.13
8. Indiana
Average Social Security benefits in 2018:$US1,464.61
Estimated Social Security benefits in 2038:$US2,418.74
7. Washington
Average Social Security benefits in 2018:$US1,472.50
Estimated Social Security benefits in 2038:$US2,431.77
6. Maryland
Average Social Security benefits in 2018:$US1,482.87
Estimated Social Security benefits in 2038:$US2,448.89
5. Michigan
Average Social Security benefits in 2018:$US1,493.77
Estimated Social Security benefits in 2038:$US2,466.90
4. New Hampshire
Average Social Security benefits in 2018:$US1,498.01
Estimated Social Security benefits in 2038:$US2,473.90
3. Delaware
Average Social Security benefits in 2018:$US1,517.11
Estimated Social Security benefits in 2038:$US2,505.43
2. Connecticut
Average Social Security benefits in 2018:$US1,546.67
Estimated Social Security benefits in 2038:$US2,554.25
1. New Jersey
Average Social Security benefits in 2018:$US1,553.63
Estimated Social Security benefits in 2038:$US2,565.74
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