Average Age to Claim Social Security: When you start getting Social Security benefits will have a big effect on how you plan for your retirement. This is a decision that should be made thoughtfully.
It can be helpful to think about common patterns and practices when making these kinds of choices but relying only on what most people choose may not always be the best thing to do.
Keeping track of the average age at which people start getting benefits and the amount they get each month can help you understand general trends and possible benefits. You can use this information to help you make a decision, but you should also think about your own finances and retirement plans.
Average Age Americans Claim Social Security and the Monthly Benefit They Receive
There hasn’t been a change in the Social Security eligibility age since the program’s beginning. Retirement benefits are available to you at any age, beginning at age 62. However, an increasing number of Americans are delaying their benefit claims.
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In 2008, the mean age at which a retiree filed for benefits was 63.6 years for both genders. After ten years, the average age at which claims were made rose by roughly one year, to 64.7 for men and 64.6 for women. That age is still rising.
There is an easy way to explain the increase in age claims. There has been a program change In 1983, Congress passed a bill that began the process of raising the full retirement age (FRA). When you reach that age, you can start getting your full Social Security benefit. The FRA went from 65 to 66 a little over a year ago. It’s going from 66 to 67 right now.
When the full retirement age goes up, people are more likely to wait to start getting benefits because there are bigger penalties for doing so. People can claim at age 62, but they will only get 70% of their full benefit. This is true even though the full retirement age is 67. Another group would get 80%. This group was 65 years old when they retired fully. To put it another way, putting off benefits these days is a lot more beneficial.
Based on the most recent data from the Social Security Administration, this meant that the average age at which a person claims retirement benefits rose to 65 for men and 64.9 for women in 2022.
When retirees apply for benefits, they typically receive the following amount
In 2022, $1,938.75 was the average new retirement benefit award. These retirees now receive an average benefit of $2,174.86 after receiving two significant cost-of-living adjustments (COLAs) in 2023 and 2024.
That only applies to those who in 2022 made their first retirement benefit claim. According to Aol July’s average retirement benefit was $1,871.09, or $1,919.40 if you exclude those who are claiming benefits for their spouses or children.
When Will You Receive Your Social Security Disability Insurance?
People who claim their Social Security benefits before age 65 usually get less money, so it’s a surprise that people who claim their benefits earlier also get less than the average. A 65-year-old who started getting benefits in 2022 got an average of $1,874.56 a month, which is 3.3% less than the mean amount.
There are a few things that this difference could mean. First, people who file their taxes early usually made less money over the course of their careers. Benefits are based on how much you’ve made on average over the course of your career, so people who make less have lower primary insurance amounts. Also, they might not have saved as much for retirement, which makes getting extra benefits even more important.
Second, the benefits get better as you wait. Your benefits go up by 5/12 of a percent per month if you wait to claim until you are 64 years old. The rate of rise is 5/9 of a percent per month for people aged 64 to 67. Once you reach full retirement age, the rate goes up by two-thirds of a percent every month for every extra month you wait. People who file claims later will get a higher average benefit because of this slow increase.
Is it wise to heed the advice of the masses?
Many people think that 65 is the normal age to retire. That’s the age at which you could start getting full retirement benefits. It’s also the age when you can get Medicare, which makes it easier to quit your job and the health insurance that comes with it.
But for a lot of retirees, waiting until age 65 to start getting retirement benefits could end up costing them a lot.
What Is the Social Security Spousal Rule and How Can You Maximize Benefits? Here is a Guide
If you’ve saved and invested wisely for retirement, delaying your Social Security benefits until at least your full retirement age could be advantageous. Generally, waiting until age 70 will maximize your lifetime Social Security benefits.
Your lifetime Social Security income is influenced by how long you live. According to CDC data, most people who reach age 62 will live to around age 70. Thus, delaying benefits until this age or later typically results in higher overall benefits. Unless you have a reason to believe you’ll live significantly shorter than average, waiting until you’re 70 is often beneficial.
A 2019 study by United Income supports this, showing that most retirees would maximize their retirement wealth by waiting until age 70 to claim benefits. Only 10% would benefit most by claiming at age 67, and just 8% would be better off claiming before age 65.
