Social Security is crucial for millions of Americans, but the age at which you choose to claim it could significantly impact your monthly checks. So, what is the average age people start collecting benefits, and how much are they getting? Here’s a closer look.
The Average Age Most People Claim Social Security
Over the years, the average age for claiming Social Security has been creeping upward. In the late 1990s, most Americans were filing for benefits around 63. But today, that number is closer to 65, with many retirees delaying even further to boost their monthly payouts.
One reason for this shift? Awareness about how claiming benefits early can permanently reduce monthly payments.
How Monthly Benefits Change Based on Age
When you decide to start collecting Social Security benefits, the age you choose makes a huge difference in how much you’ll get. If you claim early at 62, you’ll face a reduction in benefits that stays with you for life. But if you wait until Full Retirement Age (FRA)—which is 66 or 67, depending on when you were born—you’ll receive a larger amount.
Want to maximize your checks? Delaying until age 70 is where the magic happens. Here’s a breakdown of what you could expect:
- Age 62: The maximum monthly benefit is $2,710.
- FRA (66-67): The maximum jumps to $3,822.
- Age 70: The maximum soars to $4,873.
The average retiree at 67 currently receives around $2,101 per month, while those who wait until 70 collect about $2,081 on average. The slight decrease at 70 reflects the fact that fewer people choose to delay benefits that long.
Why Some Retirees Claim Early and Others Wait
Deciding when to claim Social Security is a highly personal decision. Here are some common factors influencing that choice:
- Immediate financial needs: Many people claim early because they need the money to cover living expenses.
- Health and life expectancy: Those with health concerns often claim earlier, reasoning they may not live long enough to benefit from waiting.
- Job loss or early retirement: Unexpected job loss or planned early retirement can push people to claim sooner.
- Lack of awareness: Not everyone fully understands the financial advantages of delaying benefits until 70.
Unfortunately, studies show only a small percentage of retirees wait until 70 to claim their benefits, despite the clear financial advantage.
Is Waiting to Claim Social Security Right for You?
While waiting until 70 can significantly boost your monthly checks, it’s not always the right move for everyone. Factors like your health, retirement plans, and overall financial situation play a big role. For those in good health and with enough savings, waiting could lead to tens of thousands of dollars in extra benefits over a lifetime.
Experts recommend consulting with a financial advisor before making any decisions. With careful planning, you can maximize your Social Security income and create a more secure retirement.
