Social Security is a cornerstone of retirement income for millions of Americans. According to a 2024 Gallup poll, 60% of retirees depend heavily on these benefits, with 88% relying on them to some degree.
While claiming benefits early might seem tempting, delaying your Social Security claim can significantly increase your monthly checks. Let’s investigate how waiting can benefit you financially and whether age 67 is the right time to claim your Social Security benefits.
Claiming
For many, age 67 is a critical point for maximizing Social Security benefits. This age is considered Full Retirement Age (FRA) for people born after 1960, meaning you can collect 100% of your entitled benefit amount. According to data from the Social Security Administration, the average benefit amount for 67-year-olds in 2023 was $1,883.50 per month.
- Men at age 67 collected an average of $2,093.70 per month.
- Women at age 67 collected an average of $1,676.20 per month.
For comparison, the average benefit for those claiming early at age 62 is significantly lower, around $1,298.26 per month. That’s a difference of roughly $585 per month compared to waiting until 67, highlighting the potential financial advantage of holding off.
Waiting Pays Off
If you claim Social Security at age 62, your benefits will be permanently reduced by up to 30%. For many retirees, this reduction can make a big difference, especially as you age and your expenses—such as healthcare—potentially increase.
In contrast, waiting until age 67 can boost your checks by that same 30%, which may translate into hundreds more per month. And if you can wait even longer, your benefits will increase by 8% each year until you reach age 70.
Here’s a breakdown of the average Social Security benefit at different ages:
| Claiming Age | Average Monthly Benefit |
|---|---|
| Age 62 | $1,298.26 |
| Age 67 | $1,883.50 |
| Age 70 | $2,364 (estimated based on 8% yearly increase) |
That extra income can provide a safety net for rising costs in your later years, allowing you more flexibility in retirement.
Age 67
Filing at age 67 strikes a balance between claiming early and delaying until 70. While you won’t get the highest possible check (as you would if you waited until 70), you’ll still receive a substantial boost compared to filing at 62.
However, this decision isn’t purely financial. Here are a few factors to consider:
- Health: If you’re in poor health or worried about longevity, waiting may not be the best choice.
- Work and Burnout: If you’re burnt out or can’t continue working, delaying may be less appealing.
- Financial Situation: If your savings are limited, you may need to claim earlier to cover expenses.
Choosing age 67 allows you to maximize your benefits without having to wait as long as age 70. However, it’s crucial to weigh the pros and cons based on your personal circumstances.
Social Security
Many retirees overlook strategies to boost Social Security income. By carefully planning when to claim and taking advantage of little-known tactics, you could see a significant difference in your total retirement income. One simple strategy could add up to $22,924 more to your annual benefits.
For example, some retirees may not realize that spousal benefits or delayed retirement credits can increase their payouts. If you’re married, coordinating with your spouse on when each of you files can help optimize your household’s benefits.
Delaying your Social Security benefits until age 67 or beyond can lead to a significantly higher monthly check, potentially adding hundreds of dollars to your income each month. While waiting until age 70 offers the highest benefits, age 67 is a good middle ground, allowing you to enjoy larger payments without delaying for too long.
Ultimately, the decision of when to claim Social Security is personal. By knowing the financial impact of waiting and considering your own health, work status, and financial situation, you can make the best choice for your retirement.
FAQs
How much does the average 67-year-old collect in Social Security benefits?
The average benefit at age 67 is $1,883.50 per month, with men averaging $2,093.70 and women $1,676.20.
How much will I lose if I claim Social Security at age 62?
Claiming at age 62 can reduce your benefits by up to 30% compared to waiting until your full retirement age.
What happens if I delay Social Security until age 70?
Your benefits will increase by 8% per year after age 67, maximizing your monthly payments at age 70.
Can I increase my Social Security benefits after claiming?
Once you start receiving benefits, the only way they increase is through Cost of Living Adjustments (COLA). However, you can delay claiming to increase your initial benefit.
What’s the best age to claim Social Security?
It depends on your personal circumstances, but 67 is a common age to strike a balance between larger checks and retiring sooner.
