Average Social Security Checks at 62: Deciding when to start receiving your Social Security benefits is one of the most critical decisions in retirement planning. The age at which you begin collecting benefits—whether at 62, 67, or 70—has a significant impact on the amount of money you’ll receive each month for the rest of your life.
This article explores how retirement age affects your monthly Social Security checks, provides practical advice for decision-making, and offers clear examples to make this crucial topic approachable.
Average Social Security Checks at 62
| Retirement Age | Percentage of Full Benefit | Average Monthly Benefit | Notes |
|---|---|---|---|
| 62 | 70% | $1,311 | Benefits start early but are permanently reduced. |
| 67 | 100% | $1,894 | Full Retirement Age (FRA) for individuals born 1960 or later. |
| 70 | 124% | $2,068 | Benefits are maximized with delayed retirement credits. |
Source: Social Security Administration
The age at which you begin claiming Social Security benefits is a personal decision that requires careful consideration of your financial needs, health, and long-term goals. While starting early provides immediate income, delaying benefits can result in significantly higher monthly payments over time.
By understanding the implications of claiming at 62, 67, or 70 and leveraging resources like the SSA’s tools and financial advisors, you can make an informed choice that aligns with your retirement plan.
Understanding Social Security Benefits
Social Security is a cornerstone of retirement income for many Americans. Your monthly benefit amount is determined by your Primary Insurance Amount (PIA), which is based on your average indexed monthly earnings (AIME) during your 35 highest-earning years.
Full Retirement Age (FRA)
Your Full Retirement Age (FRA) is the age at which you’re eligible to receive 100% of your PIA. For individuals born in 1960 or later, the FRA is 67. Choosing to claim benefits before or after your FRA adjusts the amount you receive:
- Early Retirement (Age 62): Reduces your monthly payments to 70% of your PIA.
- Delayed Retirement (Age 70): Increases your payments to 124% of your PIA, thanks to Delayed Retirement Credits.
Average Social Security Benefits by Age
The age at which you begin claiming Social Security benefits significantly impacts the monthly amount you’ll receive. Here’s a closer look:
Age 62
- Percentage of Full Benefit: 70%
- Average Monthly Benefit: $1,311
- Key Considerations: Claiming at 62 provides earlier income but results in permanently reduced benefits. This option is often chosen by individuals who need immediate income or have shorter life expectancies.
Age 67
- Percentage of Full Benefit: 100%
- Average Monthly Benefit: $1,894
- Key Considerations: Waiting until your FRA ensures you receive your full benefit amount. This is the default choice for many retirees who don’t need early access to benefits.
Age 70
- Percentage of Full Benefit: 124%
- Average Monthly Benefit: $2,068
- Key Considerations: Delaying benefits maximizes your monthly payments, offering significant long-term financial advantages, especially for individuals with longer life expectancies.
Factors to Consider When Choosing Your Retirement Age
1. Life Expectancy
If you expect to live into your 80s or 90s, delaying benefits can result in higher lifetime earnings. For example, someone who lives to 90 and starts benefits at 70 will receive significantly more total income than someone who starts at 62.
2. Financial Needs
If you have immediate financial needs, claiming benefits early at 62 might be the best choice. However, this decision permanently reduces your monthly payments.
3. Employment Status
Continuing to work after age 62 can affect your benefits:
- Before FRA: Earning above the annual limit ($21,240 in 2024) may temporarily reduce your benefits.
- After FRA: There’s no earnings limit, and your benefits won’t be reduced.
4. Other Retirement Income Sources
Evaluate your other income sources, such as pensions, savings, or investments. A diversified income strategy can provide the flexibility to delay Social Security and maximize benefits.
Practical Advice for Retirement Planning
1. Use the SSA’s Online Tools
The Social Security Administration offers online calculators to help estimate your benefits. Use these tools to explore how different claiming ages will impact your monthly payments. Access the calculators at ssa.gov.
2. Create a Budget
Assess your expected expenses in retirement. Knowing your financial needs can help determine whether you should claim benefits early or wait.
3. Consult a Financial Advisor
A financial advisor can help tailor a retirement plan to your unique circumstances, ensuring you make the most informed decision about when to claim Social Security.
4. Plan for Healthcare Costs
Medicare eligibility begins at age 65. If you plan to retire before then, ensure you have a strategy for health insurance coverage.
5. Consider Spousal Benefits
If you’re married, coordinate with your spouse to maximize your combined Social Security benefits. Spousal and survivor benefits can significantly impact your total retirement income.
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FAQs On Average Social Security Checks at 62
1. Can I change my decision after starting Social Security benefits?
Yes, within 12 months of your initial claim, you can withdraw your application and reapply later. However, you must repay any benefits received during that time.
2. How does working after starting Social Security affect my benefits?
If you start benefits before your FRA and earn above the annual limit, your benefits may be temporarily reduced. Once you reach FRA, your benefits will be recalculated to account for the months they were reduced.
3. Are Social Security benefits taxable?
Yes, depending on your total income. Up to 85% of your benefits may be subject to federal income tax if your income exceeds certain thresholds.
4. How does the COLA adjustment impact benefits?
The Cost-of-Living Adjustment (COLA) increases benefits annually to keep pace with inflation. For example, the 2025 COLA is set at 2.5%.
5. What happens if I delay benefits beyond age 70?
There’s no financial advantage to delaying benefits past age 70, as delayed retirement credits stop accruing at that age.
