The amount of your Social Security benefit is largely determined by your age at the time you begin collecting it. In fact, this is one of the most important factors to remember because, for example, starting collecting it at age 62 will result in a benefit reduction of hundreds of dollars.
At the full retirement age, which is 67 for those born in 1960 or later, you will receive 100% of your benefit based on your employment history. This means that there will be no deductions for claiming early or bonuses for delaying it past that age. If you are in this situation or are considering this average, we will do our best to explain everything as clearly as possible.
The average Social Security benefit by age
According to the most recent Social Security Administration data, a retired worker at age 67 receives an average monthly benefit of $1,883.50. However, keep in mind that this amount varies depending on whether you are a man or a woman.
- For men, the average is set at $2,093.70 per month.
- For women, this average is set at $1,676.20 per month.
As is normal, this is not a fixed amount and will also depend on other factors, such as the amount of your earnings during your working life, how many years you worked, and, as we already mentioned, the age at which you began to collect the benefit.
Is it worth waiting to collect Social Security?
If we had to give a short answer, we would say yes, if you can afford to wait. Keep in mind that the difference is significant: a retired worker who begins collecting at age 62 receives around $1,298 on average, whereas someone who waits until age 70 receives $2,038 on average; as you can see, there is a difference of more than $700 per month.
Even if you can’t wait until you’re 70, delaying your benefits for a year or two can significantly increase your payment. Finally, the longer you wait, the higher your Social Security payment. Your financial situation, health status, and life expectancy are also important considerations.
This is also dependent on your financial situation, health, and life expectancy.
A “bonus” that many overlook
Few people are aware that certain strategies can significantly increase their Social Security benefits. According to expert calculations, certain tricks can increase your retirement income by up to $22,924 per year.
Do you want to learn the secret? What it boils down to is maximizing the age at which you begin collecting, understanding the spousal benefit if applicable, and strategically planning your income.
It may sound complicated, but understanding all of these aspects is well worth it because they can provide you with the financial peace of mind that everyone seeks in retirement.
Important but personal decision
There is no single answer for when to collect Social Security. Each case will be unique and must be approached as such. However, if you can recognize how age affects the amount of your benefit, you will be able to make more informed decisions.
Finally, it is important to feel secure about your retirement plan, whether you retire at age 62, 67, or even 70; always make financial decisions that benefit you and your family.
Also See:- United States benefits you could receive at the same time apart from Social Security in 2025