1975 vs. Today: See How Social Security Benefits Have Changed!

The year was 1975. Maybe you remember it, maybe you don’t, but it was a notable time. Gerald Ford led the nation as President, Saturday Night Live made its television debut, and the Vietnam War came to an end. The fashion of the day included bell-bottom jeans and disco was the music of choice. Purchasing a new house would set you back about $40,000 on average, while the median family income was a mere $13,720.

But what about those who were retired and depending on Social Security in 1975? The average retirement benefit was a modest $207 per month, which adds up to roughly $2,500 per year.

That may not sound too bad when you consider the cost of living at the time—a half gallon of milk was $0.79 and a pound of coffee was $1.33. However, there was a significant gap between the earnings of those still working and those retired—a gap that persists today. Below is a table illustrating how average Social Security benefits have evolved over the years:

Source: Data source: Social Security Administration, 2023 Annual Statistical Supplement.*As of December 2024.

The latest figures show the average monthly Social Security benefit stands at $1,975, totaling about $23,700 annually. If that’s significantly less than you anticipated, here are some important points to consider:

• Individuals who earned more than average during their working years will receive higher-than-average Social Security benefits.
• Benefits generally increase each year due to cost-of-living adjustments (COLAs).
• By setting up a my Social Security account, you can get an estimate of your future benefits based on your earnings record.
• There are strategies to enhance your benefits if you haven’t started collecting them yet, such as boosting your income while you’re still employed and delaying your benefit claim until age 70, if feasible. (For many, waiting until age 70 is the optimal plan.)

To maximize your financial comfort in retirement, it’s advisable to have multiple sources of income.

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