When to claim Social Security is a hard decision for many retired workers. Eligibility starts at age 62, but there is a trade-off between claiming right away and delaying. Specifically, the earlier you claim benefits, the smaller the payout. But the later you claim benefits, the fewer the number of payouts you collect.
Statistically speaking, most workers will maximize their lifetime Social Security income by starting benefits at age 70, which is the latest sensible claim age. Additionally, a study published in 2022 by the National Bureau of Economic Research concluded that virtually all workers would be better off claiming later than age 65.
Read on to see the average Social Security benefit at different ages.
Image source: Getty Images.
The average Social Security benefits for retired workers at different ages
The Social Security Administration regularly publishes anonymized benefit data to foster transparency and promote public understanding. For instance, the average Social Security benefit paid to retired workers was $1,975 in December 2024.
The chart below provides more detail. It shows the average monthly benefit paid to retired workers at different ages. The report from which the data was collected is updated twice per year. The figures below come from December 2024.
|
Age |
Average Retired-Worker Benefit |
|---|---|
|
62 |
$1,342 |
|
63 |
$1,364 |
|
64 |
$1,425 |
|
65 |
$1,611 |
|
66 |
$1,764 |
|
67 |
$1,930 |
|
68 |
$1,980 |
|
69 |
$2,040 |
|
70 |
$2,148 |
Source: Social Security Administration. Note: Information is current as of December 2024, and payment amounts have been rounded to the nearest dollar.
As shown in the chart, the average Social Security payout generally increases with age. The average 70-year-old retired worker receives about $806 per month more than the average 62-year-old retired worker.
Readers should focus on ages 62, 65, and 70 because they cover the decision-making spectrum: Sixty-two is the earliest possible claim age, 70 is the latest rational claim age, and 65 provides a claim age between the two extremes.
The Social Security Administration considers several variables when determining retired-worker benefits, but claim age plays an important role. All else being equal, retired workers will get the smallest possible benefit at age 62 and the biggest possible benefit at age 70.
A step-by-step explanation for how Social Security benefits are calculated
Social Security benefits are based on work history, lifetime earnings, and claim age. Exactly how the Social Security Administration (SSA) uses those variables to calculate benefits is detailed in the two-step process below.
- Step 1: The SSA determines the primary insurance amount (PIA) for a worker by applying a formula to the inflation-adjusted wages from their 35 highest-paid years of employment. The PIA is the benefit a worker will receive if they claim Social Security at full retirement age (FRA), which is 67 for anyone born in 1960 or later.
- Step 2: The SSA adjusts the PIA for early or delayed retirement. Workers who start Social Security before FRA get less than 100% of their PIA, and workers who start Social Security after FRA get more than 100% of their PIA. There are two conditions to that rule: No one can claim earlier than 62, and there is no advantage to claiming later than 70.
The chart below details the relationship between birth year and FRA. It shows the retirement benefit (as a percentage of PIA) workers will receive if they start Social Security at 62 and 70. In other words, it shows the smallest and largest payout for workers in each FRA group.
|
Birth Year |
Full Retirement Age |
Benefit at Age 62 |
Benefit at Age 70 |
|---|---|---|---|
|
1943-1954 |
66 |
75% |
132% |
|
1955 |
66 and 2 months |
74.2% |
130.6% |
|
1956 |
66 and 4 months |
73.3% |
129.3% |
|
1957 |
66 and 6 months |
72.5% |
128% |
|
1958 |
66 and 8 months |
71.7% |
126.6% |
|
1959 |
66 and 10 months |
70.8% |
125.3% |
|
1960 and later |
67 |
70% |
124% |
Data source: The Social Security Administration.
This is the most important lesson: Retired workers can substantially increase their benefit by delaying Social Security until age 70. To be exact, workers with a birthdate in 1960 or later will receive 77% more in monthly benefits if they claim at age 70 rather than age 62.
As a caveat, taking Social Security at age 70 is not the best decision for everyone. Personal circumstances matter, and talking with a financial advisor can help. For instance, someone struggling to make ends meet without benefits may be better off claiming at age 62. The same applies to someone not expecting to live beyond age 76.
