According to the Social Security Administration (SSA), the average monthly retirement benefit for Security Security recipients is $1,781.63 as of February. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
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You become eligible for Social Security at 62, but you’ll receive a reduced monthly payment by claiming benefits before your full retirement age, which varies by your date of birth.
Here’s a breakdown of how the average benefit could change depending on when you decide to collect.
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The Payments Grow With Every Month You Wait
Someone turning 62 and becoming eligible for Social Security today was born in 1961. For those born in 1960 or later, full retirement age is 67. Rounding up the current average benefit to $1,782 for the sake of even numbers and presuming that as the full benefit, here’s how a hypothetical recipient’s payment would change between the start of eligibility and full retirement age.
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62 Years Old
If people born after 1960 claim their benefits the month they turn 62, they’ll get only 70% of what they would have received had they waited until the full retirement age of 67. The average monthly payment of $1,782 drops by 30% during the first month of eligibility to $1,247.40. Here’s the dollar amount, and the percentage of the full benefit it represents, for every month they wait after that.
Those who claim at 65 will receive 86.7% of the full monthly benefit, which drops the average from $1,782 to $1,544.99.
65 + 1 month: $1,553.90 (87.2%)
65 + 2 months: $1,564.60 (87.8%)
65 + 3 months: $1,573.51 (88.3%)
65 + 4 months: $1,584.20 (88.9%)
65 + 5 months: $1,593.11 (89.4%)
65 + 6 months: $1,603.80 (90%)
65 + 7 months: $1,614.49 (90.6%)
65 + 8 months: $1,623.40 (91.1%)
65 + 9 months: $1,634.09 (91.7%)
65 + 10 months: $1,643.00 (92.2%)
65 + 11 months: $1,653.70 (92.8%)
66 Years Old
At 66, the reduced benefit jumps to 93.3% of the full average monthly payment of $1,782, which is $1,662.61.
66 + 1 month: $1,673.30 (93.9%)
66 + 2 months: $1,682.21 (94.4%)
66 + 3 months: $1,692.90 (95%)
66 + 4 months: $1,703.59 (95.6%)
66 + 5 months: $1,712.50 (96.1%)
66 + 6 months: $1,723.19 (96.7%)
66 + 7 months: $1,732.10 (97.2%)
66 + 8 months: $1,742.80 (97.8%)
66 + 9 months: $1,751.71 (98.3%)
66 + 10 months: $1,762.40 (98.9%)
66 + 11 months: $1,771.31 (99.4%)
If You Can Wait Even Longer, You’ll Get Even More
If you wait until you’re 67, you’ll receive 100% of the full benefit, which in this hypothetical scenario is $1,782. But if you wait even longer, you’ll receive an extra 0.7% for every month you delay up to 124% of the full benefit until you turn 70, when the delayed retirement credits stop.
68 years old: $1,924.60 (108%)
69 years old: $2,067.12 (116%)
70 or older: $2,209.68 (124%)
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This article originally appeared on GOBankingRates.com: Here’s the Average Social Security Benefit at Every Age
As of 2022, the median household income in the U.S. was $74,580, according to the U.S. Census Bureau. Assuming a middle-class retiree earned this salary and retired at age 65 — specifically 65 and 11 months — their Social Security benefit would be $1,867 per month.
Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.
Just how much is the average retired-worker beneficiary taking home at age 64? According to data from the SSA, the 1,034,598 retired workers receiving a benefit at this age, as of December 2022, were bringing home $1,411.50 per month, or $16,938 on an annualized run-rate basis.
The maximum Social Security benefit you can receive in 2024 ranges from $2,710 to $4,873 per month, depending on the age you retire. "Maximum benefits can be received by delaying the start of benefits until age 70 since benefits increase by about 8% for each year you delay beyond full retirement age.
California. In America's most populous state, some 4.3 million retirees who collect Social Security can expect to receive an average $1,496.13 per month from the program in 2020, or $17,953.56 over the course of the year. California is another state where benefits are below average for the U.S.
According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
Social Security payments vary widely from person to person, but the average monthly payout as of September 2023 is just under $1,707, while the maximum payment—for someone whose annual career earnings average $160,200 or more and retires at full retirement age—is $3,627. Those numbers are always in flux, though.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Social Security survivors benefits are paid to widows, widowers, and dependents of eligible workers. This benefit is particularly important for young families with children.
Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
If your pay at retirement will be $100,000, your benefits will start at $2,026 each month, which equals $24,315 per year. And if your pay at retirement will be $125,000, your monthly benefits at the outset will be $2,407 for $28,889 yearly.
If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase. If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age.
Introduction: My name is Greg Kuvalis, I am a witty, spotless, beautiful, charming, delightful, thankful, beautiful person who loves writing and wants to share my knowledge and understanding with you.
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