Older retirees benefit more from Social Security

The average 70-year-old receives significantly more money than the average Social Security recipient. As of the latest data from December 2023, the average 70-year-old retired worker receives a Social Security benefit of $2,037.54 per month, or about $24,450 per year. This is higher than the overall average retired worker’s Social Security benefit of $1,905 per month. It’s important to note that this average includes people who started collecting Social Security at various ages, not just those who started at 70. This brings the average down. When looking at 70-year-olds who waited beyond their full retirement age to start collecting benefits, the average is much higher at $2,916.32 per month, or nearly $35,000 per year. For this group, the average amount they would have received at full retirement age is around $2,399.39. These numbers show the financial advantages of delaying Social Security benefits if your situation allows you to wait. We’ve all heard that “patience is a virtue,” but for retiree Bianca G., it’s a $100,000 lesson she learned the hard way. Bianca started collecting her Social Security benefits at age 62. Now, at 72, she regrets that decision. “If I could turn back time, I’d tell my 62-year-old self to wait,” Bianca said. “I thought I was being smart, but turns out I was very wrong!” Bianca was eager to retire in her early 40s. When she turned 62, she wanted to leave working life and get to her retirement as soon as possible. She understood her benefits would be reduced, but not by how much. Here’s what she discovered: If you turn 62 in 2024 and start claiming benefits, your monthly check will be about 30% lower than if you’d waited until your full retirement age of 67. That’s a significant difference. When Bianca turned 67, the full impact of her choice became clear. “I was at a retirement seminar, and the speaker was talking about how much more you could get if you waited until 70,” she said. “I nearly fell out of my chair when I did the math!” By waiting until her full retirement age, Bianca could have received 100% of her benefit amount. And if she had held out until 70? She could have increased her monthly check by 24%. As Bianca adjusted to retired life, she saw how her reduced benefits affected her lifestyle.

social security benefit differences by age

“It’s not just about the smaller monthly check,” she explained. “It’s about all the things you can’t do because of it.” While Bianca can’t change the past, she hopes her story will help others. Here are some key takeaways: – Understand your full retirement age. If you were born in 1960 or later, it’s 67. – Know the cost of claiming early. Your benefits could be reduced by up to 30% if you claim at 62. – Consider the benefits of waiting. Delaying until 70 can increase your benefit by 24% above your full retirement age amount. – Think long term. Consider your health, family history, and financial needs over the next 20-30 years. “If I could do it all over again, I’d wait until 70,” Bianca said. “Sure, I’d have to work a few more years at a job I didn’t love; but, looking back, the peace of mind and financial security would be worth it.” Among retired workers, the average Social Security benefit amount at age 67 is $1,883.50 per month, according to December 2023 data from the Social Security Administration. Men aged 67 collect an average of $2,093.70 per month, while the average woman receives $1,676.20 per month. For comparison, the average benefit at age 62 is just $1,298.26 per month—roughly $585 per month less than the average at 67. If money will be tight, waiting a few years to claim is one of the simplest ways to boost your income. Age 67 can be a good middle ground between claiming early and delaying. Filing early allows for an earlier retirement, but means smaller checks. Delaying benefits maximizes your monthly income, but requires a longer wait. By filing at 67, you can get larger checks than at 62 without waiting as long as age 70. Regardless of when you file, it’s crucial to understand how your age affects your benefit amount. By weighing the pros and cons of all your options, you can make the best choice for your individual retirement. If you’re like most Americans, you may be behind on your retirement savings. But there are ways to increase your retirement income. By learning how to maximize your Social Security benefits, you can retire with greater financial security.