Social Security plays a vital role for countless seniors, with 43% of baby boomers counting on it as their main income during retirement, as highlighted in a 2024 report from the Transamerica Center for Retirement Studies.
For those who are already retired, the average monthly benefit is about $1,925, based on the latest figures from the Social Security Administration.
But keep in mind that this amount can differ significantly depending on when you decide to start claiming your benefits. Let’s take a closer look at how much extra you could pocket by waiting until age 67 instead of starting at 62.
Your age can really impact how much you get in benefits—either increasing it or cutting it down significantly!
When you decide to start collecting Social Security can really change how much money you get each month—sometimes by several hundred dollars! Your full retirement age (FRA) is the point when you can claim your full benefit based on your work history.
This age depends on when you were born; for anyone born in 1960 or later, it’s set at 67. If you were born before that, your FRA will be either 66 or a bit older.
If you choose to file before reaching your FRA, be prepared for a permanent reduction in your monthly payments—the earlier you start, the less you’ll get.
For instance, if you’re eligible for benefits at 67 and decide to file at 62 instead, your payments could drop by as much as 30%. On average, retirees who wait until they’re 67 can expect about $586 more each month compared to filing at 62.
In fact, data from the Social Security Administration in 2023 shows that the average monthly benefit at 62 is around $1,298—while waiting until age 67 bumps that up to about $1,884.
And if you’re thinking of holding off even longer? That could pay off too! For those with an FRA of 67, waiting until you’re 70 can give you an extra boost of about 24% on top of your full benefit amount. So for the typical retiree filing at age 70, this means around $2,038 each month.
Putting off benefits doesn’t always turn out to be a good idea.
When it comes to deciding when to file for Social Security, waiting can often be the smarter financial choice. A 2019 study by United Income revealed that about 57% of Social Security beneficiaries could end up with a bigger lifetime payout if they wait until age 70 to file.
Plus, the research indicated that the average retired household might see an extra $111,000 in lifetime income by filing at the optimal age. However, money isn’t everything when it comes to retirement.
If you’re dealing with health issues and suspect you might not live into your 70s or longer, filing earlier could actually be a wise decision. While this would lower your monthly payments, if your time is shorter than average, you could end up receiving more overall from Social Security.
You might also think about filing early as part of a strategy with your spouse. For instance, if you’re 62 and your partner is a few years older, you might decide to retire and start collecting benefits together.
Your spouse can file later for larger checks, which can help balance out any reduction in income you’ll experience by filing early.
There are plenty of factors to weigh when figuring out the best age for you to claim Social Security. While it’s crucial to consider the financial implications of this decision, don’t forget to look at the bigger picture—your overall retirement goals and what matters most to you during this phase of life!
Did you know that many retirees completely miss out on a Social Security bonus worth $22,924? It’s surprising how often this opportunity flies under the radar!
Chances are, if you’re like many people in the U.S., your retirement savings might not be where you want them to be just yet. But don’t worry! There are some lesser-known Social Security tips that could really enhance your retirement income.
For instance, there’s a simple strategy that could potentially add up to an extra $22,924 to your yearly benefits! Once you figure out how to make the most of your Social Security, you’ll be on your way to retiring with the confidence and security we all hope for.