Social Security is the main source of income for millions of retirees in the United States, although few are aware that the amount of benefits can vary considerably depending on the age at which you decide to begin collecting them.
Although it is possible to apply for Social Security as early as age 62, there is a significant difference in payments when waiting until later in life. The Social Security Administration (SSA) sets the full retirement age at 67 for those born in 1960 or later. However, opting to delay retirement until age 70 can be key to maximizing income.
Best ages to maximize Social Security benefits
The amount you get from Social Security depends on several factors, such as your work history and contributions, but the age at which you decide to retire is crucial. Those who retire at age 62 get an average check of $1,275 in 2024, which is a significant reduction compared to those who wait until age 67 or 70.
Benefits increase significantly if you decide to delay your retirement. Those who wait until age 67 will get an average check of $1,845, while those who delay until age 70 will see their income increase to $1,963 per month in 2024. This difference can be decisive in ensuring financial stability in the future.
Additional factors to consider for retirement
It is critical to keep in mind that these are averages and that the exact amount may vary depending on your work history and lifetime contributions. In addition, each year the Social Security Administration (SSA) adjusts benefits for inflation and cost of living, which also influences the total amount received. Another relevant factor is gender differences, as, on average, men tend to get higher checks than women. This is due to the pay gap and career breaks that many women take for family care, which can impact their contribution history.
Making the right decision about when to begin collecting Social Security benefits is crucial to your retirement. Evaluating all available options and considering delaying the start of payments until age 70 may be the best strategy to maximize your income and ensure greater financial stability in the future.