Social Security is the primary source of income for millions of retirees in the United States, but few know that the amount they get can vary significantly depending on the age at which they choose to begin collecting their benefits. Although it is possible to apply for Social Security as early as age 62, waiting until later in life can result in much larger payments.
The Social Security Administration (SSA) sets the full retirement age at 67 for those born in 1960 or later, but choosing to wait until age 70 could be crucial to maximizing your income.
The best age to maximize your Social Security benefits
The amount you get from Social Security is determined by several factors, including your work history and contributions made throughout your working life. However, the age at which you decide to start receiving benefits plays a crucial role in the final amount you will get. In 2024, those who retire at age 62 receive an average check of $1,275, a significantly lower figure compared to those who choose to wait until age 67 or even age 70 to begin their retirement.
The difference in payments can be noticeable, as waiting until an older age generally results in a substantial increase in the monthly Social Security amount. Therefore, the decision of when to retire can have a significant impact on the total amount of income you will get during retirement, highlighting the importance of carefully planning your retirement age to maximize your benefits.
Late retirement or early retirement, which is the best option?
Social Security benefits increase significantly if you decide to delay retirement. In 2024, those who wait until age 67 to retire will get an average check of $1,845, while those who postpone retirement until age 70 will see their income rise to $1,963 a month. This difference in payments can be crucial to ensuring long-term financial stability.
Other factors that condition retirement
It is important to remember that these are averages and that the exact amount may vary depending on your work history and lifetime contributions. In addition, each year, the SSA adjusts benefits for inflation and the cost of living, which also influences the total amount received. Gender differences also play a role; as, on average, men get higher checks than women, due to the pay gap and career breaks for family care, which can affect your contribution history.
Making the right decision about when to start getting Social Security benefits can have a significant impact on your retirement. Evaluating all options and considering waiting until age 70 may be the best strategy to maximize your income and ensure a more stable financial future.
