This Is the Average Social Security Benefit for Age 65

Most investors probably already know the average monthly Social Security payment currently stands at $1,976. But, that can be a somewhat-misleading number. Millions of beneficiaries are cashing checks of less than $1,000 per month, while just as many people are enjoying monthly payments of more than $3,000.

The number is also skewed by those who made the decision to initiate their retirement benefits before reaching their intended full retirement age -- or FRA -- of 66 or 67 (depending on when they were born), thus reducing the size of their payment. Conversely, the figure's lifted by workers that delayed beginning their retirement checks in order to make these payments bigger once begun.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

To this end, the Social Security Administration reports the average monthly payment for today's 65-year-olds is a below-average $1,611, reduced because these recipients didn't wait until reaching their full retirement age to claim benefits.

It's not necessarily the end of the world. These retirees may be seeing smaller payments, but they'll also likely be collecting checks for a longer period of time than their peers. Presuming every recipient lives their full life expectancy regardless of when they initiate benefits, they'll all get about the same amount of money from Social Security during their lifetimes.

Broadly speaking though, most people are better served by delaying Social Security's retirement benefits for as long as possible as a means of making their future payments bigger. It may also be easier to continue working at the age of 68 or 69 than it is to go back to work at the age of 70 or 71 simply to make ends meet.

That said, know that waiting past the point you turn 70 doesn't help much. Indeed, although you'll get the money back later in the form of bigger benefits payments, working while you're receiving Social Security retirement benefits could actually reduce the size of your current Social Security checks.

In other words, if you've still got the choice, think carefully about when you really want to start collecting Social Security. Hundreds of dollars per month are at stake.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.