By Raul Rodriguez Cota
Aug 19, 2024, 6:39 PM EDT
The age at which you decide to begin collecting your Social Security benefits can have a big impact on the amount you will receive each month during retirement.
Understanding how when you begin claiming Social Security benefits affects your monthly and lifetime payments is crucial to maximizing your retirement income.
Most Americans rely heavily on these benefits to cover their senior living expenses, so it’s important to plan carefully.
The data show that between 80% and 90% of current retirees rely on their Social Security checks, while between 76% and 88% of people who have not yet retired anticipate needing these benefits in the future.
This underscores the importance of making strategic decisions about when to start claiming your benefits.
Impact of claim timing on Social Security benefits
If you start receiving benefits at age 62, the monthly amount will be lower compared to waiting until age 66 or 70, due to penalties for claiming your payments early.
In fact, if you decide to wait until age 70, your benefits can be up to 32% higher than if you had claimed them at age 66, and up to 57% higher than if you had claimed them at age 62.
According to a recent report from the Social Security Administration (SSA), average benefits for retired workers vary depending on the age at which they begin claiming:
–At age 62, the average check is $1,298.26.
–At age 66, the amount increases to $1,739.92.
–At age 70, the average check rises to $2,037.54, which represents 57% more than the benefit at age 62.
The decision of when to claim your Social Security benefits is one of the most important you will make to ensure your financial well-being in retirement.
Weighing the pros and cons of claiming at age 62, 66 or 70 will help you maximize your income and enjoy a more secure retirement.
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