Deciding when to claim your Social Security benefits could shape big time your retirement, and how much money you’re getting when enjoying your golden years. While the option to claim Social Security opens up at age 62, there’s a compelling reason to exercise patience.
Delaying your benefit can result in a more substantial monthly check, creating a potential financial advantage in the long term. But, when is it a good idea to wait, and how much should you wait to get your Social Security benefits? The Centers for Disease Control and Prevention (CDC) made some investigations, and here is all you need to know about it.
Is Delaying Social Security Benefits Worth It?
To maximize your lifetime Social Security benefits, a crucial factor comes into play: your life expectancy. The calculation of your monthly benefits check hinges on your work history and the timing of your claim concerning your full retirement age (FRA).
For those born in 1960 or later, the FRA is set at 67. If your birth year falls before 1954, your FRA is 66, with variations for those born in between, reaching FRA between 66 and 67 years old.
Claiming at your full retirement age ensures you receive your primary insurance amount (PIA). Opting for an early claim results in a reduced amount, while delaying it earns you a higher payout. Here’s a breakdown of the percentage of your primary insurance amount at different ages, depending on various full retirement ages:
- At FRA: 100% of your primary insurance amount.
- Claiming early: A reduced amount.
- Delaying the claim: An increased amount.
Shape Your Personal Approach on Social Security
To make a wise decision, first you got to know your FRA based on your birth year to make informed decisions. Then, evaluate the percentage differences in benefits based on the chosen age of claiming. Consider longevity factors assessing your health, family history, and other factors to estimate your life expectancy.
Explore how the monthly variations impact your overall financial strategy in retirement. Finally, always look for professional guidance: consult with financial advisors to tailor your Social Security claiming strategy to your unique circumstances.
How Much Money Will You Get According to Your Retirement Age?
Here’s the percentage of your primary insurance amount you’ll receive at different ages, given different full retirement ages:
- Claiming at 62:
- FRA 67: 70%
- FRA 66 1/2: 72.5%
- FRA 66: 75%
- Claiming at 63:
- FRA 67: 75%
- FRA 66 1/2: 77.5%
- FRA 66: 80%
- Claiming at 64:
- FRA 67: 80%
- FRA 66 1/2: 83.33%
- FRA 66: 86.67%
- Claiming at 65:
- FRA 67: 86.67%
- FRA 66 1/2: 90%
- FRA 66: 93.33%
- Claiming at 66:
- FRA 67: 93.33%
- FRA 66 1/2: 96.67%
- FRA 66: 100%
- Claiming at 67:
- FRA 67: 100%
- FRA 66 1/2: 104%
- FRA 66: 108%
- Claiming at 68:
- FRA 67: 108%
- FRA 66 1/2: 112%
- FRA 66: 116%
- Claiming at 69:
- FRA 67: 116%
- FRA 66 1/2: 120%
- FRA 66: 124%
- Claiming at 70:
- FRA 67: 124%
- FRA 66 1/2: 128%
- FRA 66: 132%