The age at which you begin collecting Social Security benefits plays a crucial role in determining the amount you will receive. Starting your benefits early, for example, at age 62, can lead to significant reductions in your monthly payout. Conversely, delaying your benefits can result in higher payments, so it’s essential to understand how your decision will affect your financial future.
Full Retirement Age and the Average Social Security Benefit
For individuals born in 1960 or later, the full retirement age (FRA) is 67. At this age, you are entitled to receive 100% of your Social Security benefit based on your work history. This means no reduction for early claims or bonus for delaying beyond this age. If you’re nearing FRA or considering the average payout, it’s helpful to know how much you can expect.
According to the most recent data from the Social Security Administration, the average monthly benefit at age 67 for a retired worker is $1,883.50. However, the amount varies by gender:
- Men: $2,093.70 per month
- Women: $1,676.20 per month
This amount is not fixed and can fluctuate depending on factors like your earnings history, the number of years you worked, and the age at which you start collecting your benefits.
Is It Worth Waiting to Collect Social Security?
In short, yes, it’s generally beneficial to wait if you can afford to do so. Delaying your benefits results in a larger monthly payment. For example, a retired worker who starts collecting at age 62 will receive an average of $1,298 per month. However, if they wait until age 70, their monthly benefit increases to around $2,038, a difference of over $700 per month.
Even if you can’t wait until age 70, delaying your benefits by just one or two years can lead to a significant increase in your payout. The longer you wait, the higher your Social Security benefit will be. That said, your decision should also consider your financial situation, health condition, and life expectancy.
Also Read – Millions of Americans Will See Social Security Increases in 2025, But Here’s the Catch
A Hidden Bonus to Boost Your Social Security Benefits
Many people don’t realize that certain strategies can maximize their Social Security benefits. According to experts, you could potentially boost your retirement income by as much as $22,924 per year by applying these strategies.
What’s the secret? It comes down to understanding the optimal age to begin collecting, considering spousal benefits if applicable, and planning your income strategically. Though these factors may seem complex, mastering them can lead to greater financial security in retirement.
A Personal and Important Decision
The decision of when to begin collecting Social Security benefits doesn’t have a one-size-fits-all answer. Each individual’s situation is unique, and what works for one person may not work for another. However, knowing how age impacts your benefit amount puts you in a strong position to make an informed decision.
Ultimately, your goal should be to feel secure in your retirement plan, whether you decide to start collecting at age 62, wait until age 67, or even delay until age 70. No matter what, always make financial decisions that align with your personal needs and those of your family.
