Individuals who meet the eligibility requirements for Social Security determined by their own employment history may begin receiving benefits at any point between the age of 62 and 70. However, your monthly benefit will increase as long as you wait to file for Social Security. In light of this, the average retirement worker’s Social Security payout at age 70 is shown here, along with an explanation of the potential consequences of delaying your claim.
Recipients Of Social Security
By the end of 2022, the most recent year for which we have comprehensive data, 2.96 million recipients of Social Security were 70 years of age or older. For this group, the average per-month payment was $1,938.49. There have, however, been two cost-of-living increases, or COLAs, since then. Social Security recipients were given an 8.7% increase in 2023 and a 3.2% adjustment in January 2024. Therefore, even though the government hasn’t released an exact figure yet, we can anticipate that the average payment for beneficiaries who are 70 years of age this year will be roughly $2,175 each month, or else $26,100 year, based on the average for 2022 and accounting for those two COLAs.
It’s crucial to remember that this is typical of all 70-year-old retired workers who are now receiving Social Security benefits. This category comprises those who filed for Social Security as soon as age 62 and whose benefits every month are thereafter permanently decreased, as well as those who filed at earlier ages. Stated differently, this is not the typical Social Security income received by an individual who begins receiving payments at age 70. That would probably be a lot more.
Consequences Of Holding Off Until Age 70
Social Security defines “full retirement age” as 67 years old for those born in 1960 or later. For those who were born earlier that year, it is a little less, but for those who have not yet retired, it ranges from 66 to 67. When a person reaches full retirement age, they can begin receiving Social Security benefits right away as they turn 62. However, if they choose to accept benefits earlier than this, their monthly amount will be permanently lowered by a tiny number for each month that they claim earlier.
However, if you choose to continue working until your FRA, you’ll permanently raise your benefit at a rate of 8% per year (prorated monthly) until you reach the age of 70, at which point you will no longer be able to accrue delayed retirement credits. What this signifies to you is as follows. Assuming you were born in 1960, your employment record would entitle you to a $2,000 monthly Social Security payment when you are 67 years old. Your Social Security payout would be 24% greater ($2,480 per month) if you waited until age 70 to begin receiving checks, in addition to any cost-of-living increases that would be made during those three years.
Retirees may find success by delaying Social Security claims as long as feasible. Delaying can not only result in a far greater inflation-protected retirement income than you would otherwise have, but it can also provide you a few more years to aggressively grow your retirement savings. Of course, not everyone can afford to wait until they turn 70 to begin receiving Social Security benefits. The key takeaway, though, is that you may make a big difference in your retirement income and lifestyle by only delaying a year.
