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Check The Average Social Security Benefits You May Receive In 2024

Social Security Benefits
Social Security Benefits; Source- Forbes

Whether you know it or not, Social Security provides the majority of seniors with a necessary source of income. Every year, it helps lift over 21.7 million individuals out of poverty, including about 15.4 million persons 65 and older. According to the Center on Budget and Policy Priorities, the senior poverty rate would be an estimated 38% if Social Security had not been established, compared to 10% with Social Security.

Social Security Benefits

Social Security Benefits; Source- Forbes

Effect Of Age On Social Security Benefits

It’s crucial to make the most of what you will acquire because of how vital this program is and will be for the relevant current and future retirees. To achieve this, however, you must first have a firm grasp of how your benefit is determined and how your age of claim might significantly affect this determination. While Social Security benefits have certain peculiarities, such as certain recipients potentially being liable to federal and/or state taxes on a portion of their benefits, the four “ingredients” that determine your monthly retired worker check are your simple work history, earnings history, full retirement age, and claiming age.

Work history and earnings history are the first two criteria that are correlated. The Social Security Administration (SSA) will use your 35 highest-earning, inflation-adjusted years to determine how much your monthly Social Security payout will be. This implies that your retirement payout will almost certainly be bigger if you make more money overall over your life. Additionally, it means that you will pay a penalty to the Social Security Administration (SSA) for each year that you do not work for at least 35. The penalty is zero dollars. Your entire retirement age is the third ingredient.

Claiming Social Security Benefits At Age 62

This age, which is based on the year of your birth, is when you start to qualify for 100% of your retirement benefit. The complete retirement age for individuals born in 1960 or later is 67. Your claimed age is the fourth ingredient that’s particularly important to this recipe. As early as age 62, qualified employees can start getting their Social Security benefits. On the other hand, the program rewards patience. The allure of filing a claim at age 62 is that you can start receiving your benefit right away. Retirees who are worried that their benefits could be reduced in less than ten years may find it acceptable to file an early claim.

Suitable Age To Claim For Social Security Benefit

The main reason why age 66 claims are so common is that they fall in the middle of the typical age range for claims. Beneficiaries can collect their payout while they are still young enough to enjoy it, and any permanent payout reduction can be lessened or eliminated by delaying benefit receipt for an additional four years. The ability to optimize your monthly benefit is unquestionably a benefit of claiming your benefit at age 70. In comparison to what you would have received at full retirement age, an age 70 claim can increase your monthly payout by 24% to 32%, depending on your birth year.

Now that you know more about the factors that may force retirees to start taking their payments at age 62, 66, and 70, let’s examine the current average income that retired workers are receiving at each age. Remember that the information below may not accurately reflect the age at which these individuals claim to be retiring because it is based on their age as of December 2022. For example, recipients who are 66 years old may have claimed their reward at any point between 62 and 66 years old.

Estimates from the SSA’s Office of the Actuary show that as of December 2022, approximately 566,000 beneficiaries who were 62 years of age or older were receiving $1,274.87. At 66 years of age, the average Social Security benefit received by 2.27 million retired workers is $1,719.85. Finally, the estimated 2.96 million retired worker claimants who turned 70 in December 2022 received $1,963.48 in benefits. Put another, the average retired worker who is 66 years old is getting paid around 35% more each month than the worker who retired at age 62. In contrast, those who are 70 years old are, on average, earning 54% more each month than those who are 62 years old.

 

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