Social Security Benefits for Retirees: Breakdown at ages 62, 65, and 70
The Social Security Administration (SSA) determines retirement benefits based on a worker's work history, lifetime earnings, and claim age. For individuals born in 1957, the full retirement age is 66 and 6 months.
The SSA calculates the primary insurance amount (PIA) for a worker by considering the inflation-adjusted wages from their 35 highest-paid years of employment. The benefits are then adjusted according to the claim age, with several variables coming into play.
As of December 2024, the average Social Security benefit varies significantly depending on the age at which you start claiming. Generally, benefits increase the longer you delay, up to full retirement age or beyond. Here's an overview of average monthly benefits at different ages based on recent data:
| Age | Average Monthly Benefit (Approximate) | Notes | |------|---------------------------------------|---------| | 62 | $1,341 | Starting benefits at 62 reduces the payment by about 30% compared to full retirement age; men average around $1,485, women about $1,207. | | 63 | $1,364 | Slightly higher than age 62; men average $1,504, women $1,233. | | 64 | $1,425 | Increasing with age; men average $1,574, women $1,289. | | 65 | $1,611 | Benefit continues to rise and approaches full retirement amount; men $1,784, women $1,452. | | 66 | $1,763 | Near full retirement age for many; men $1,958. | | 67 | $1,930 | Full retirement age (FRA) for those born after 1960; receive 100% of benefit. |
Claiming at age 62 yields the lowest average monthly benefit, about $1,341. The benefit rises gradually each year and peaks at full retirement age (67 for most current retirees), where the average monthly benefit is about $1,930. Delaying claims beyond full retirement age increases the benefit further, though detailed figures for beyond 67 were not included in the data.
It's important to note that these figures represent averages, and individual benefits vary based on earnings history and other factors. Additionally, there are gender differences in average benefits, with men typically receiving somewhat higher payments at each age bracket.
For workers born between 1943 and 1959, the earliest possible age to claim Social Security is between 66 and 10 months. For those born in 1955, the full retirement age is 66 and 2 months, while for those born in 1956, it's 66 and 4 months. For workers born in 1958, the full retirement age is 66 and 8 months, and for those born in 1959, it's 66 and 10 months.
The SSA adjusts the PIA for early or delayed retirement. Retired workers with a birthdate in 1960 or later can increase their monthly benefits by 77% if they claim at age 70 rather than age 62.
The eligibility for Social Security starts at age 62, and the average Social Security benefit paid to a 70-year-old retired worker is $2,148. The average Social Security benefit paid to a 62-year-old retired worker is $1,342.
Sources: The Social Security Administration.
Personal finance plays a significant role in determining the retirement benefits one can expect from the Social Security Administration (SSA). A personal's finance history, including their work history and lifetime earnings, is used to calculate the primary insurance amount (PIA).
Individuals planning their retirement should be aware that delaying the claim age for Social Security benefits can lead to increased monthly payments. For instance, a person born in 1960 or later can enhance their monthly benefits by 77% if they claim at age 70 instead of 62.
