When it comes to securing your financial future for retirement, understanding the nuances of Social Security benefits can make a substantial difference. The more you know on how to crunch some numbers, and get as much money as possible.
According to recent data from the Social Security Administration (SSA), the average monthly retirement benefit for recipients stands at $1,781.63 as of February. However, unlocking the full potential of your Social Security benefits involves more than just numbers: it’s about strategic timing and informed decisions. There are some things to consider when thinking about retiring, and here’s all you need to know to discover what’s the average payment for every age in the United States.
First, The Key Insights Into Social Security Eligibility
The age at which you choose to start claiming your Social Security benefits is a critical factor that significantly impacts the monthly payment you’ll receive. While eligibility kicks in at 62, there’s a catch. Opting for benefits before reaching your full retirement age results in a reduced monthly payment. The full retirement age varies based on your date of birth.
For individuals born in 1960 or later, the full retirement age is set at 67. Considering the current average benefit of $1,781.63 (rounded up to $1,782 for simplicity), let’s delve into how a hypothetical recipient’s payment would evolve from the moment of eligibility to reaching full retirement age.
For those eager to kickstart their retirement journey at the earliest opportunity, claiming Social Security benefits at 62 is an option. However, it comes with a trade-off—a reduced monthly payment. Understanding the implications and weighing them against your financial goals is crucial at this stage.
Reaching your full retirement age brings the advantage of receiving the full calculated benefit. At 67, you can enjoy the fruits of your patience with a monthly payment that reflects your complete entitlement. This option is ideal for individuals who can afford to wait and seek maximum financial security.
The Social Security Payments Increase With Every Month You Wait
Below you will see the list of each of the retirement ages, and when your payments would grow the most with each month you wait to start enjoying your retirement.
Retiring at 62 Years Old
If individuals born after 1960 choose to claim their benefits at the age of 62, they will receive only 70% of the amount they would have gotten by waiting until the full retirement age of 67. For instance, the average monthly payment of $1,782 decreases by 30% in the initial month of eligibility, resulting in a payment of $1,247.40. The longer individuals wait beyond the age of 62, the higher the percentage of the full benefit they will receive.
- 62 + 1 month: $1,254.53 (70.4%)
- 62 + 2 months: $1,261.66 (70.8%)
- 62 + 3 months: $1,270.57 (71.3%)
- 62 + 4 months: $1,277.69 (71.7%)
- 62 + 5 months: $1,284.82 (72.1%)
- 62 + 6 months: $1,291.95 (72.5%)
- 62 + 7 months: $1,299.08 (72.9%)
- 62 + 8 months: $1,306.21 (73.3%)
- 62 + 9 months: $1,315.12 (73.8%)
- 62 + 10 months: $1,322.24 (74.2%)
- 62 + 11 months: $1,329.37 (74.6%)
Retiring at 63 Years Old
If you choose to delay until the age of 63, you will receive 75% of your total benefits, equating to $1,336.50 from the average monthly payment of $1,782.
- 63 + 1 month: $1,343.63 (75.4%)
- 63 + 2 months: $1,350.76 (75.8%)
- 63 + 3 months: $1,359.67 (76.3%)
- 63 + 4 months: $1,366.79 (76.7%)
- 63 + 5 months: $1,373.92 (77.1%)
- 63 + 6 months: $1,381.05 (77.5%)
- 63 + 7 months: $1,388.18 (77.9%)
- 63 + 8 months: $1,395.31 (78.3%)
- 63 + 9 months: $1,404.22 (78.8%)
- 63 + 10 months: $1,411.34 (79.2%)
- 63 + 11 months: $1,418.47 (79.6%)
Retiring at 64 Years Old
By postponing until the age of 64, you will receive 80% of the complete average monthly payment of $1,782, amounting to $1,425.60.
- 64 + 1 month: $1,436.29 (80.6%)
- 64 + 2 months: $1,445.20 (81.1%)
- 64 + 3 months: $1,455.89 (81.7%)
- 64 + 4 months: $1,464.80 (82.2%)
- 64 + 5 months: $1,475.50 (82.8%)
- 64 + 6 months: $1,484.41 (83.3%)
- 64 + 7 months: $1,495.10 (83.9%)
- 64 + 8 months: $1,504.01 (84.4%)
- 64 + 9 months: $1,514.70 (85%)
- 64 + 10 months: $1,525.39 (85.6%)
- 64 + 11 months: $1,534.30 (86.1%)
Retiring at 65 Years Old
Individuals opting to claim benefits at the age of 65 will receive 86.7% of the complete monthly benefit, leading to a reduction in the average amount from $1,782 to $1,544.99.
- 65 + 1 month: $1,553.90 (87.2%)
- 65 + 2 months: $1,564.60 (87.8%)
- 65 + 3 months: $1,573.51 (88.3%)
- 65 + 4 months: $1,584.20 (88.9%)
- 65 + 5 months: $1,593.11 (89.4%)
- 65 + 6 months: $1,603.80 (90%)
- 65 + 7 months: $1,614.49 (90.6%)
- 65 + 8 months: $1,623.40 (91.1%)
- 65 + 9 months: $1,634.09 (91.7%)
- 65 + 10 months: $1,643.00 (92.2%)
- 65 + 11 months: $1,653.70 (92.8%)
Retiring at 66 Years Old
Upon reaching the age of 66, the decreased benefit increases to 93.3% of the complete average monthly payment of $1,782, amounting to $1,662.61.
- 66 + 1 month: $1,673.30 (93.9%)
- 66 + 2 months: $1,682.21 (94.4%)
- 66 + 3 months: $1,692.90 (95%)
- 66 + 4 months: $1,703.59 (95.6%)
- 66 + 5 months: $1,712.50 (96.1%)
- 66 + 6 months: $1,723.19 (96.7%)
- 66 + 7 months: $1,732.10 (97.2%)
- 66 + 8 months: $1,742.80 (97.8%)
- 66 + 9 months: $1,751.71 (98.3%)
- 66 + 10 months: $1,762.40 (98.9%)
- 66 + 11 months: $1,771.31 (99.4%)
You Can Get Up To 124% If You Wait Longer
If you choose to postpone claiming your benefits until you reach the age of 67, you will be entitled to receive the full 100% of the benefit amount, which, in this fictional example, amounts to $1,782. However, if you decide to delay your claim further, there’s an added incentive. For each month you defer, you accrue an additional 0.7% on top of the full benefit. This accumulation continues up to 124% of the original benefit, culminating at the age of 70, when the accrual of delayed retirement credits ceases.
- 68 years old: $1,924.60 (108%)
- 69 years old: $2,067.12 (116%)
- 70 or older: $2,209.68 (124%)