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Social Security Secrets: How Your Benefits Change at 62, 65, and 70

Social Security Secrets: How Your Benefits Change at 62, 65, and 70

If you’re planning for retirement, one of the biggest decisions you’ll face is when to start claiming Social Security benefits. The age you decide to file can have a significant impact on how much money you’ll receive each month. Let’s break down what the average Social Security benefits look like depending on whether you start at age 62, 65, or wait until 70.

What Is Full Retirement Age (FRA)?

The Social Security Administration (SSA) defines Full Retirement Age as the age when you’re eligible to receive 100% of your earned benefits. For most people retiring today, FRA is either 66 or 67, depending on your birth year. But here’s the catch: you don’t have to wait until FRA to claim benefits. You can start as early as 62 or delay until 70 for a larger payout.

How Benefits Change by Age

  • At Age 62: This is the earliest age you can claim benefits, but it comes at a cost. Benefits are reduced by about 25-30% compared to your FRA amount. In 2023, the average monthly payment for someone filing at 62 is around $1,200-$1,300. This option may work if you need the money now or have health concerns that limit your life expectancy.
  • At Age 65 or FRA: Claiming benefits at your FRA ensures you get 100% of your calculated monthly amount. For example, in 2023, the average monthly benefit for someone claiming at FRA is about $1,800. This is a balanced choice for those who can wait a little longer but still want to enjoy their retirement years.
  • At Age 70: Delaying benefits until age 70 maximizes your monthly payment. For each year you wait beyond FRA, your benefits increase by 8%. This means a potential boost of 24-32% if you delay until 70. The average monthly benefit for someone claiming at 70 is around $2,200-$2,400. This option works well if you’re healthy and expect to live into your 80s or beyond.

    Social Security Secrets: How Your Benefits Change at 62, 65, and 70
    Social Security Secrets: How Your Benefits Change at 62, 65, and 70

What’s the Right Choice for You?

Deciding when to claim Social Security is a personal choice that depends on your health, financial situation, and retirement goals. If you need immediate income, filing early might make sense. But delaying could mean a much larger check for the rest of your life if you can afford to wait.

Key Takeaway

Understanding how benefits change at 62, 65, and 70 can help you make an informed decision. The longer you wait, the more you’ll get monthly, but your financial and personal circumstances should guide your choice.

For personalized advice, consider speaking with a financial planner or visiting the SSA’s official website to estimate your benefits.

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