For those who meet the requirements, Social Security benefits can begin as early as age 62 or as late as age 70. However, the government determines that your FRA will vary depending on your birth year and will typically lie between 66 and 67. Furthermore, a lot of Americans decide to start collecting Social Security benefits before they attain full retirement age. Logically, 65 is one of the most preferred ages to begin receiving Social Security benefits. It is, after all, the earliest age at which many workers can retire without worrying about acquiring health insurance, as it is also the age at which they become eligible for Medicare. In light of this, 1.4 million 65-year-olds are eligible for Social Security benefits as retired workers. The average benefit they get is listed below, along with information about other Social Security payments and the average benefit of retired workers of different ages.
Social Security Benefits
The average monthly income earned by a retired worker 65 years of age who filed for Social Security as of December 2022 was $1,505, as per the Social Security Yearly Statistical Supplement 2023. There have undoubtedly been considerable cost-of-living adjustments since then. The annual statistical supplement is published in November, so it will be some time before we have access to more recent data, but we are aware that beneficiaries got an 8.7% COLA (cost-of-living adjustment) for the year 2023. This means that at the end of 2023, the average 65-year-old beneficiary would have received an average benefit of roughly $1,636 per month. In addition, claimants will receive an extra 3.2% rise for 2024 beginning this month, bringing the average benefit for a 65-year-old to almost $1,688 per month.
At 65, a disabled worker typically receives a monthly compensation of $1,653. A disabled worker’s benefit becomes a regular retired worker’s benefit after they reach full retirement age. At 65, the average monthly spousal benefit is $662. The purpose of spousal benefits is to give retirement earnings to spouses who, throughout their working lifetimes, either did not work or made less money than their spouses. Benefits are also available to retired workers’ minor children. No one belonging to this category is aged 65, yet the average monthly benefit given to a child is $786.
Variations In Advantages
The data highlights a few key conclusions. First of all, you’ll see that the typical woman’s benefit as a retired worker is far lower than an average man’s benefit at any age. For a few different reasons. First, one persistent element that still exists is the gender wage disparity. The U.S. Dept of Labour estimates that the average woman doing a full-time job earns roughly 84% of what an average man does. Although the percentages are going in the right direction just two years ago, women made 81% of what men did there is still plenty of work that is to be done.
Second, after having children, women are considerably more likely to utilize long stretches of leave without pay or to work part-time jobs. These factors can make a big difference because your Social Security payout is determined by your salary during your 35 years of maximum earning. The variations in advantages with age particularly between 65 and 67 should also be noted. Compared to the average 65-year-old, the average 67-year-old receives about 23% more from Social Security.