Social Security is essential to millions of seniors, with 43% of baby boomers expecting Social Security as their primary source of income in retirement, according to a 2024 report from the Transamerica Retirement Research Center. It is said that there is.
The average benefit for retired workers of all ages is about $1,925 per month, according to the latest data released by the Social Security Administration. However, the numbers vary widely depending on when someone starts claiming benefits. This shows you exactly how much money you can expect to receive at age 67 compared to age 62.
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Your benefit amount may increase or decrease depending on your age.
The age at which you apply for Social Security directly affects the amount of your benefits, sometimes by hundreds of dollars per month.
Full Retirement Age (FRA) is the age at which you receive 100% of your benefits based on your work history. This age varies depending on the year of birth, but people born after 1960 will be 67 years old. For people born before 1960, the FRA is either 66 years or 66 years and months.
Claiming before FRA will permanently reduce your check, and the sooner you start claiming, the less you’ll receive each month. If you have a 67-year-old FRA and file as early as possible at age 62, your payments will be reduced by 30%.
The average retiree can expect to receive about $586 more per month at age 67 compared to age 62. According to 2023 data from the Social Security Administration, the average benefit for a 62-year-old is about $1,884 per month, compared to about $1,298 per month for a 62-year-old. 67 years old.
If you delay claiming until your FRA ends, you may get more benefits. If your FRA is 67, wait to apply until you’re 70 and you’ll get the full payment plus a 24% bonus. For the average retiree, filing at age 70 will result in a monthly benefit of approximately $2,038.
Deferring benefits doesn’t always pay off
From a purely financial perspective, later is often better when it comes to choosing the age at which to apply for Social Security.
About 57% of Social Security recipients could potentially increase their lifetime income by filing at age 70, according to a 2019 study by United Income. Additionally, researchers found that by filing at the ideal age, the average retired household could earn an additional $111,000 in lifetime income. year.
However, money isn’t everything in retirement. If you are battling health issues and have reason to think you may not live into your 70s or beyond, applying early may be a wise choice. This strategy will reduce your monthly income, but if you end up living a shorter-than-average life expectancy, the total amount you receive from Social Security could be even higher.
You may also choose to apply early as part of your strategy with your spouse. For example, if you’re 62 and your spouse is a few years older, you might choose to retire and enroll in Social Security at the same time. Your spouse can receive a larger check by filing at a later age, which may help offset the reduction he or she faces by filing early.
There are many factors to consider when determining the age at which you receive Social Security. While the financial aspects of this choice are important, it’s also wise to look at the big picture and focus on your overall retirement goals and priorities.
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