The earliest age to claim Social Security remains one of the most popular, and it's easy to see why. The sooner you claim, the larger your check will be. However, if you claim early, your monthly benefits will be reduced by up to 30%.
This doesn't mean it's always the wrong choice, but it's definitely something to consider when deciding when to start claiming benefits. Here's a closer look at how the average 62-year-old's check stacks up with average benefits at later claiming ages.
The average overall Social Security benefit was $1,905.31 per month in 2023. Cost of Living Adjustment (COLA). Benefits will increase by 3.2% in 2024, increasing the average benefit to $1,966.28. Checks are expected to rise another 2.5% in 2025, bringing the average to about $2,015.44.
But those who apply at age 62 will receive far less. The average monthly benefit in 2023 was just $1,298.26. Factoring in the 2024 COLA, that's $1,339.80. And the 2.5% COLA in 2025 would be approximately $1,373.30.
The average monthly benefit increases slowly with the recipient's claiming age. Currently, the 70-74 age group receives the largest average benefit of $2,021.81 in 2023 ($2,086.51 in 2024 and $2,138.67 in 2025).
This makes sense given how the government calculates Social Security benefits. You are eligible to receive scheduled benefits. Full retirement age (FRA). This is 66 to 67 years old for today's workers. Claiming early will reduce the size of your check; requesting it late will increase the size of your check. As shown in the table below, the longer you wait to apply, the higher the rate of increase.
|
The benefits increase as follows: |
Full Retirement Age (FRA) 66 years |
Full Retirement Age (FRA) 67 years |
|---|---|---|
|
5/12 of 1% per month (5% per year) |
From 1962 to 1963 |
From 62 to 64 years old |
|
5/9 of 1% per month (6.67% per year) |
From 63 to 66 years old |
From 64 to 67 years old |
|
2/3 of 1% per month (8% per year) |
From 66 to 70 years old |
From 67 to 70 years old |
Source: Social Security Administration.
Waiting until age 70 gives you the biggest Social Security check possible, but it also has its drawbacks. You will receive a smaller check, although the number of checks you will receive will be significantly reduced and may be less attractive than receiving a larger check.
There are several important factors to consider when deciding whether to file at age 62 or wait. Your health comes first. If you don't expect to live long, delaying benefit payments may not be advantageous.
In this case, we recommend signing up early so you can claim as many checks as possible. However, you should be aware that filing early will permanently reduce the survivor benefits available to your spouse and dependents after you pass away. If you don't need the money to cover your expenses today, you might be better off not charging it at all.
