When a person decides to claim their well-earned retirement payments in the United States, they can begin receiving Social Security benefits as early as age 62, although doing so before full retirement age means a lower monthly amount compared to waiting a couple of years, or even until age 70.
Look, if you reach age 62, you’re already eligible to claim your Social Security benefits, but sometimes it’s not the financially soundest thing to do at that age because you’ll suffer a significant cut. And experts recommend that, if your health and financial situation allow it, you wait a few more years to receive a larger check.
Social Security retirement increases if you wait past age 62
When starting early retirement at age 62 in the U.S., the average monthly benefit is $1,311. Those with high incomes can receive up to $2,831, according to official data. The reduction applies for claiming Social Security before full retirement age (FRA), which is between 66 and 67, depending on the year of birth.
The amount decreases by 25% to 30% if you retire at the age of 62 (the earliest possible, as we said), compared to waiting until your full retirement age. This reduction is permanent and, according to experts, has a direct impact on future payments. Therefore, it is recommended to carefully evaluate your life expectancy and financial needs before choosing this option.
Although early access to the benefit offers immediate liquidity, it also reduces long-term income. For some people, financial need forces them to withdraw early. However, postponing the application increases the monthly amount, a viable option for those who can afford to wait.
Variations between ages 63 and 64 for Social Security payments
At age 63, the average benefit increases to $1,344 per month. The penalty for early retirement decreases slightly, although there are no updated official figures on the maximum benefit at this age. The calculation still depends on earnings history and years of contributions.
Those who wait until age 64 receive an average of $1,436. The reduction in benefits is attenuated as the age approaches full retirement. “Each year of waiting increases the benefit percentage,” Social Security documents explain. This stage represents an intermediate point between the need for income and optimizing the monthly amount.
At age 65, the average benefit reaches $1,583. Although the full retirement age has not yet been reached, the penalty is considerably lower. This age is often chosen by people who prioritize their health or want to make a gradual transition to retirement without facing severe cuts. The maximum benefit for this age is not published every year, but it is known to be higher than for previous ages.
Social Security Full Retirement Age (FRA): 66 and 67 years old
At age 66, people born between 1943 and 1954 can receive their full benefit, averaging $1,774 per month. Since there are no penalties, the amount reflects 100% of the benefit, calculated based on historical earnings. Although the maximum benefit for this age group is not always publicly updated, it is substantially higher than at younger ages.
For generations born after 1960, the full retirement age is set at 67. At that point, the monthly average is $1,894, and high-income workers can receive up to $4,018. This age serves as a benchmark for calculating postponement increases. Avoiding cuts and receiving the full benefit is the main advantage of retiring at this age, although it can be further increased if the claim is postponed.
Now, here’s the thing: retiring at 66 or 67 avoids penalties and ensures a stable income. However, those who choose to continue working beyond their full retirement age can accumulate deferred retirement credits, which increase their monthly benefit by up to 8% for each year they wait.
The juicy Social Security payments if you claim from age 68
At age 68, the average monthly benefit reaches $1,947. This increase is due to the delayed retirement credits offered by Social Security. For each additional year of waiting beyond full retirement age, a percentage increase is applied to the monthly benefit until the limit is reached at age 70.
At age 69, the average benefit amounts to $1,972. Although the rate of benefit growth has slowed slightly, it still represents an improvement over previous years. “These credits are vital for those seeking to maximize long-term income,” notes a report from the Congressional Research Service. This strategy is especially beneficial for those in good health and with a longer life expectancy.
Finally, at age 70, the maximum benefit is reached. The monthly average reaches $2,068, and for those who contributed with high incomes and waited until this age, the maximum benefit can reach $5,108. This is the highest amount one can receive within the Social Security system.
Please note that there are no additional increases after age 70; therefore, waiting beyond that age does not generate additional benefits under current program rules.