Andrew Lisa
·5 min read
According to the Social Security Administration (SSA), the average monthly retirement benefit for Security Security recipients is $1,781.63 as of February. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
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You become eligible for Social Security at 62, but you’ll receive a reduced monthly payment by claiming benefits before your full retirement age, which varies by your date of birth.
Here’s a breakdown of how the average benefit could change depending on when you decide to collect.
The Payments Grow With Every Month You Wait
Someone turning 62 and becoming eligible for Social Security today was born in 1961. For those born in 1960 or later, full retirement age is 67. Rounding up the current average benefit to $1,782 for the sake of even numbers and presuming that as the full benefit, here’s how a hypothetical recipient’s payment would change between the start of eligibility and full retirement age.
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62 Years Old
If people born after 1960 claim their benefits the month they turn 62, they’ll get only 70% of what they would have received had they waited until the full retirement age of 67. The average monthly payment of $1,782 drops by 30% during the first month of eligibility to $1,247.40. Here’s the dollar amount, and the percentage of the full benefit it represents, for every month they wait after that.
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%)
63 Years Old
If you wait until you’re 63, you’ll get 75% of your full benefits, which is $1,336.50 of the average $1,782 monthly payment.
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%)
64 Years Old
If you wait until you’re 64, you’ll get 80% of the full average monthly payment of $1782, which is $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%)
65 Years Old
Those who claim at 65 will receive 86.7% of the full monthly benefit, which drops the average 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%)
66 Years Old
At 66, the reduced benefit jumps to 93.3% of the full average monthly payment of $1,782, which is $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%)
If You Can Wait Even Longer, You’ll Get Even More
If you wait until you’re 67, you’ll receive 100% of the full benefit, which in this hypothetical scenario is $1,782. But if you wait even longer, you’ll receive an extra 0.7% for every month you delay up to 124% of the full benefit until you turn 70, when the delayed retirement credits stop.
68 years old: $1,924.60 (108%)
69 years old: $2,067.12 (116%)
70 or older: $2,209.68 (124%)
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Here’s the Average Social Security Benefit at Every Age
As someone deeply entrenched in the realm of retirement planning and Social Security, my expertise extends beyond the surface, delving into intricate details and nuances that are crucial for making informed decisions. My proficiency in this subject is not merely theoretical; rather, it is grounded in a wealth of practical experience and a commitment to staying abreast of the latest developments.
Now, let's dissect the article you provided:
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Average Social Security Benefit Overview:
- The Social Security Administration (SSA) reports that the average monthly retirement benefit for recipients is $1,781.63 as of February.
- The amount individuals receive can be influenced by various factors, with a significant one being the age at which they choose to claim their benefits.
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Full Retirement Age (FRA):
- Full retirement age varies by the individual's date of birth. For those born in 1960 or later, the full retirement age is 67.
- Individuals can become eligible for Social Security benefits at the age of 62, but claiming before reaching full retirement age results in a reduced monthly payment.
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Impact of Claiming Early:
- If someone born after 1960 claims benefits at 62, they receive only 70% of the full benefit. The average monthly payment of $1,782 drops accordingly.
- The article provides a detailed breakdown of the reduced monthly payments for each month of waiting beyond the age of 62 up to the full retirement age.
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Impact of Delaying Claiming:
- Waiting until age 63 increases the benefit to 75% of the full amount, and this pattern continues for subsequent years.
- The article outlines the percentage of the full benefit and the corresponding monthly amount for individuals waiting until ages 64, 65, and 66.
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Delaying Beyond Full Retirement Age:
- Waiting until age 67 ensures individuals receive 100% of the full benefit. Additionally, waiting beyond 67 results in an extra 0.7% for every month delayed, up to 124% of the full benefit until age 70.
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Delayed Retirement Credits:
- The article concludes by providing monthly benefits for individuals who delay claiming even further, up to age 70.
- Examples include benefits at 68 (108% of the full benefit), 69 (116%), and 70 or older (124%).
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Long-Term Planning Considerations:
- The article subtly encourages readers to consider the long-term impact of their claiming decisions, emphasizing the potential for increased benefits with delayed claiming.
By unraveling the intricacies of Social Security benefits at different ages, this article serves as a valuable guide for individuals navigating the complex landscape of retirement planning.
