The Social Security Administration (SSA) recently confirmed that certain Americans will receive a new direct payment of up to $2,710 within the next four days.
However, not all retirees will qualify for this maximum amount. Social Security benefits vary based on several factors, including your work history, age at which you start claiming benefits, and taxable earnings over your career.
For example, if you filed for Social Security benefits at age 62, you may be eligible for a monthly payment of up to $2,710. However, this amount can be higher if you delayed retirement until 70, or lower if you started claiming benefits earlier.
Social Security Payments for 62-Year-Olds
If you are 62 and recently started receiving Social Security, your payment may be significantly reduced compared to waiting until full retirement age or beyond. Workers who claim at 62 can face up to a 30% reduction in their benefits.
Despite this, those who have consistently earned the taxable maximum throughout their 35-year working history could still be eligible for the maximum payment of $2,710 per month.
This reduction occurs because Social Security calculates benefits based on the age at which you claim them. Filing before full retirement age (which is 66 or 67, depending on your birth year) means accepting a lower monthly payment for life. The sooner you file for benefits, the smaller your check will be.
Can I Get $2,710 at Age 62?
Yes, it’s possible for some retirees to receive up to $2,710 per month even if they filed at 62, but only if they worked in jobs covered by Social Security and consistently earned the maximum taxable income for at least 35 years.
This ensures that they paid sufficient Social Security taxes to qualify for the higher payment.
Those still working should consider delaying their retirement. If you wait until your full retirement age or even until 70, your benefits will be higher.
In fact, someone who waits until 70 to claim their benefits could receive up to $4,873 per month. If you retire at your full retirement age, your maximum benefit would be $3,822.
Payment Dates for September 2024
For retirees who filed for Social Security at age 62 or older, there are two main payment dates in September 2024. Your exact payment date depends on your birth date:
- September 18: If your birth date falls between the 11th and 20th of the month, you will receive your payment on this day.
- September 25: If you were born between the 21st and 31st of the month, your payment will be processed on this date.
Those who receive Supplemental Security Income (SSI) or have been receiving Social Security benefits since before May 1997 may receive their next payment on October 3, 2024.
Benefits of Delaying Social Security
Delaying your Social Security benefits beyond your full retirement age can significantly increase your monthly payments. Here’s how it works:
Increased Monthly Payments
For every year you delay claiming benefits after reaching full retirement age (66 or 67, depending on your birth year), your benefit increases by about 8%, up to age 70. After age 70, there are no additional increases, so it’s generally advised to claim your benefits by then.
For example:
- If your full retirement age is 66 and you wait until age 70, your benefit could increase by 32%. So, if your benefit would have been $1,000 per month at 66, waiting until 70 boosts it to $1,320 per month.
- These delayed credits are added monthly, not annually. So even if you wait just a few months after full retirement age, you’ll see an increase in your payment.
Long-Term Impact
The increased benefit you receive by delaying is locked in for the rest of your life. Additionally, future cost-of-living adjustments (COLA) are based on your higher benefit amount, so those adjustments will also result in higher payments.
However, there’s a tradeoff: by waiting to claim benefits, you’ll receive fewer checks over your lifetime. On average, the total lifetime benefits tend to equalize whether you claim early, at full retirement age, or at 70. But those who live longer than average stand to gain more by waiting.
Break-Even Point
Typically, the break-even point for delaying Social Security benefits is around 12-14 years after full retirement age.
This means that if you delay benefits, you will need to live into your early 80s for the larger monthly payments to outweigh the lost income from the years you didn’t claim benefits.
For those with health concerns or shorter life expectancies, it might make more sense to claim early. However, if you expect to live a long life, waiting could pay off in terms of higher lifetime benefits.
Social Security benefits are a lifeline for many retirees, but the amount you receive can vary greatly based on when you start claiming. While some 62-year-olds can receive up to $2,710 in September, others who delay until 70 can receive significantly more—up to $4,873 per month.
The choice between claiming early or waiting comes down to individual circumstances, such as health, financial need, and long-term retirement goals.
If you’re eligible for Social Security and considering when to file, weighing the long-term benefits of delaying your claim could result in a higher monthly check and more financial security in your later years.
FAQs
When is the next Social Security payment?
Payments will be made on September 18 or September 25, depending on your birth date.
What’s the maximum Social Security payment at 62?
Eligible retirees can receive up to $2,710.
How much can I get if I wait until age 70?
You can receive up to $4,873 if you wait until 70.
Does delaying retirement always increase benefits?
Yes, benefits increase by 8% per year up to age 70.
What is the break-even point for delaying benefits?
It’s typically around 12-14 years after full retirement age.
