of Social Security Administration (SSA) reports that the average check is $1,767.03 as of December 2023, but the amount can vary widely depending on the recipient’s situation.
as Focus on budget and policy priorities Without America’s best retirement system, the poverty rate for seniors is estimated to be about 38%, compared to 10% with Social Security (as of March 2022).
Given the importance of the Social Security program, it’s important to understand more about your retirement age and how it affects the average monthly payments you’ll receive in the future.
Should people retire at age 62, 67, or 70?
Most people can start receiving Social Security Severance pay However, these benefits are often reduced because recipients are typically not eligible to receive full benefits until age 67. Retirees who delay retirement until age 70 will receive 124% of their payments.
Keep these guidelines regarding SS retirement benefits in mind when making decisions, and consider the following when you reach age 62, 67, and 70.
- The person who says Retired at age 62 only receive 70% A 30% reduction in benefits from the SSA will reduce your entire monthly income in retirement.
- you are entitled to receive 100% your social security retirement benefits At 67 years old.
- After you turn 67, you can increase your benefits by 8% for each year you wait. For example, you can receive benefits such as: 124% If you wait until you retire, you can receive retirement benefits. 70 years old.
Below is a breakdown of the average Social Security benefit and the percentage of the full benefit you receive based on your retirement age.
- 62: $1,298 (70%)
- 63: $1,339 (75%)
- 64: $1,460 (80%)
- 65: $1,563 (86.7%)
- 66: $1,740 (93.3%)
- 67: $1,884 (100%)
- 68: $1,948 (108%)
- 69: $1,945 (116%)
- 70: $2,038 (124%)
As mentioned earlier, the average payout for retired workers is significantly higher at age 70 than at age 62. social security payments It usually increases with age. Although age differences in claims are the main factor influencing this dynamic, there are other reasons as well.
All else being equal, retired workers who claim SS according to their age. 62 If you claim according to your age, you will receive the lowest possible payment 70, they receive the largest amount imaginable. If a retired worker applies for Social Security according to his age, his income will be divided into two amounts. 67.
Understand the four factors used to calculate Social Security benefits
Although Social Security benefits include certain peculiarities, such as the possibility that some recipients may have a portion of their benefits taxed at the federal, state, or local level, The relevant elements used in the calculation are: monthly retiree check is simple:
- Work history
- Earnings history
- full retirement age
- claimed age
Work history and income history are the first two criteria that intertwine.of S.S.A. considers your highest 35 years of inflation-adjusted income when determining your monthly Social Security benefits.
This is your Severance pay The more money you earn over your lifetime, the higher the amount will almost certainly be. Additionally, he will pay a fine to the SSA for each year he does not work for at least 35 years. The fine is zero dollars.
The third factor is full retirement age. This age is based on your year of birth and is the age at which you begin to qualify. 100% of retirement allowance. The full retirement age for anyone born after 1960 is 67 years old, which includes the majority of today’s workforce.
Finally, the fourth essential element in the Social Security formula is your filing age. A worker who meets the requirements can begin receiving Social Security benefits as early as she is 62 years old. Still, as previously observed, this program encourages patience.