The amount of the Social Security benefit largely depends on the age at which you begin to collect it. In fact, this is one of the key factors to always keep in mind since, for example, if you start collecting it at age 62, there will be a reduction of hundreds of dollars in your benefit.
At full retirement age, which is 67 for those born in 1960 or later, what you receive will be 100% of your benefit based on your work history. This would mean there will be neither deductions for claiming early nor bonuses for delaying it beyond that age. If you are in this situation or considering this average, we will try to explain everything as clearly as possible.
The average Social Security benefit by age
If we consult the most recent data from the Social Security Administration, we see that the average monthly benefit for a retired worker at age 67 is $1,883.50.
But, be careful, this amount is not the same if 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, it would be yes, if you can afford to wait. Keep in mind that the difference is very significant: a retired worker who starts collecting at age 62 receives around $1,298 on average, while someone who delays it until age 70 raises the amount to $2,038 on average; as you can see, it is a difference of more than $700 per month.
But even if you cannot wait until age 70, delaying your benefits by one or two years can make the payment rise considerably. Ultimately, the longer you wait, the higher the Social Security payment. Also, as is logical, your financial situation, health condition, and life expectancy come into play here.
This also depends on your financial situation, health condition, and life expectancy.
A “bonus” that many overlook
There is an interesting idea that few know: some strategies can significantly increase your Social Security benefits. According to expert calculations, applying certain tricks can represent up to $22,924 more per year in your retirement income.
Do you want to know the secret? What it really comes down to is optimizing the age at which you will start collecting, understanding the spousal benefit if it applies, and strategically planning your income. It sounds complicated, but it is really worth understanding all these aspects, as they can end up giving you the financial peace of mind that everyone seeks at retirement.
Important but personal decision
There is no single answer to tell you when to collect Social Security. Each case will be unique and must be understood as such. However, if you learn to recognize how age affects the amount of your benefit, you will already be ahead of the game in making informed decisions.
In the end, it is about feeling secure with your retirement plan, whether you retire at age 62, delay it to age 67, or even dare to postpone it until age 70; always seek financial decisions that work for you and your family.
