Deciding when to start claiming Social Security is a big decision because it directly affects how much money you’ll receive every month. If you start as early as possible at age 62, your monthly checks will be smaller.
On the other hand, if you wait until age 67 or later, you can enjoy larger payments.
For people born in 1960 or later, age 67 is considered the “full retirement age.” At this age, you’ll get your full benefits based on your work history, with no deductions or bonuses.
Let’s look at how much the average retiree gets at this age and why your timing matters so much.
What Is the Average Benefit at Age 67?
Based on data from December 2023 by the Social Security Administration (SSA):
- The average monthly payment for retirees at age 67 is $1,883.50.
- For men, the average is higher at $2,093.70 per month.
- For women, the average monthly benefit is $1,676.20.
Your benefit depends on factors like your earnings during your working years, your age when you start claiming benefits, and whether you delay your payments.
Why Timing Affects Your Benefits?
If you claim Social Security at age 62, your payments will be significantly lower. At this age, the average monthly benefit is $1,298. But if you wait until age 70, the average benefit increases to $2,038. That’s an extra $740 per month, just for waiting a few years.
Here’s a quick breakdown:
| Age | Average Benefit (All Retirees) | Average for Men | Average for Women |
|---|---|---|---|
| 62 | $1,298 | $1,440 | $1,167 |
| 67 | $1,884 | $2,094 | $1,676 |
| 70 | $2,038 | $2,257 | $1,816 |
Delaying Benefits Can Pay Off
Even if waiting until age 70 isn’t possible, delaying your claim by just a year or two can still make a big difference. For example:
- Claiming at age 67 instead of 62 can mean $586 more per month on average.
- Waiting until age 70 gives you an additional $154 per month compared to claiming at 67.
These extra payments can add up over time, giving you more financial security during retirement.
How to Decide the Best Age to Claim?
Choosing when to claim Social Security depends on your situation. Here are some things to consider:
- Your Health: If you expect to live a long life, waiting to claim might be worth it.
- Your Savings: If you have enough savings to cover your expenses, delaying benefits can be a smart move.
- Your Financial Needs: If you need money right away, starting earlier might make sense.
Why Women’s Benefits Are Lower?
On average, women receive smaller Social Security checks than men. This is often because women:
- Earn less than men over their lifetimes.
- Spend more time out of the workforce due to caregiving responsibilities.
If you’re a woman, planning your retirement carefully to maximize your benefits is especially important.
Making the Right Choice for Your Retirement
Understanding how your age affects your Social Security benefits is the first step toward making a smart retirement plan. By carefully considering when to start claiming, you can boost your payments and enjoy a more comfortable retirement.
Even if waiting until age 70 isn’t realistic for you, delaying your benefits by just a few years can still lead to a noticeable difference in your monthly income. Plan, and choose the best option for your unique needs.
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