The age at which Americans can claim their full retirement benefits has gradually increased. Currently, individuals born in 1960 or later must wait until they reach the age of 67 years and one month to be eligible for their full retirement benefits.
Workers can start receiving their Social Security retirement benefits at age 62, but they are reduced if they receive them before the full retirement age. On the other hand, if the worker decides to wait, they will collect more money at the expense of working longer.
If you were born in 1954 or before, your full retirement age is 66. There are no penalties for these folks, but if you are born after this date, you must wait longer. If you reach full retirement age at 66, the average monthly check you will receive is $3,627.
Average Social Security retirement benefits in 2023
Average payments for all retirees enrolled in the Social Security program increased to approximately $1,909 in January 2024, according to the Social Security Administration (SSA).
raising the the US retirement age seems neutral until you remember the poor aren’t living any longer
rich seniors losing a couple years from their decades-long retirement is no biggie, but for poor seniors, who may only collect for a few years as it is, it’s a HUGE benefits cut https://t.co/isI78tcvTJ pic.twitter.com/3cD3TEjp5z
However, if you retire in 2023 at age 62, your maximum benefit would be much lower, $2,572. Waiting until age 70 to claim increases the maximum benefit to more than $4,000. However, you will only receive the maximum benefit if your working income exceeds a specific limit for the majority of years you were incorporated in the workforce.
Calculating retirement benefits
The amount that you can receive when you retire is determined by a few main factors. The SSA looks at your 35 highest-income years and calculates the average. Then, that number is plugged into a formula, considering the age at which you retire, which will determine your primary insurance amount (PIA). You can use the Social Security Administration’s calculator to see your benefits.
FAQs
According to recently released data from the SSA's Office of the Actuary, just over 590,000 retired-worker beneficiaries were receiving $1,298.26 per month at age 62, as of December 2023. That compares to about 2.11 million aged 66 retired-worker beneficiaries who were taking home $1,739.92 per month.
How much Social Security will I get at 66 and 6 months? ›
If you start receiving benefits at age 66 and 6 months you get 100 percent of your monthly benefit.
What is the average Social Security payment at 67? ›
According to the SSA's Office of the Actuary, retired-worker beneficiaries who were 62 years old in December 2023 received an average check of $1,298.26. As for 67-year-old retired-worker beneficiaries, the average payout was a more robust $1,883.50.
What is the maximum Social Security check at age 66? ›
Key Takeaways. The maximum benefit is $3,822 for someone at full retirement age in 2024. Individuals must wait until full retirement age to claim benefits and have been a high earner for 35 years to earn the maximum Social Security benefit.
How much can a 66 year old make while on Social Security? ›
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
What is the lowest payment from Social Security? ›
- Social Security's special minimum benefit pays at least $49.40 per month in 2023 and $50.90 in 2024.
- Social Security's special minimum benefit tops out at $1,033.50 per month in 2023 and $1,066.50 in 2024.
- You'll receive 100% of the benefit if you file at full retirement age or later.
One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.
At what age is Social Security no longer taxed? ›
Social Security tax FAQs
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Is it better to take Social Security at 62 or 67? ›
If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase. If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age.
At what age do you get 100% of your Social Security? ›
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Can you collect Social Security at 66 and still work full time? ›
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
Is Social Security based on the last 5 years of work? ›
Social Security bases your retirement benefits on your lifetime earnings. We adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Then we calculate your average indexed monthly earnings from your highest 35 years of earnings.
What is the 10 year rule for Social Security? ›
Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.
What is the average Social Security check? ›
Generally speaking, the average Social Security check was $1,710.78 in November 2023, according to the Social Security Administration. However, this number doesn't specifically address retirees who earned a middle income during their time in the workforce.
Do you pay taxes on Social Security? ›
You will pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually or $32,000/year filing jointly. You can pay the IRS directly or have taxes withheld from your payment.
Can I collect Social Security at 66 and a half? ›
If you were born between 1955 your full retirement age is 66 and 2 months (En español) If you start receiving benefits at age 66 and 2 months you get 100 percent of your monthly benefit. If you delay receiving retirement benefits until after your full retirement age, your monthly benefit continues to increase.
How much Social Security will I lose if I retire 6 months early? ›
In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.
Do Social Security benefits increase each year after 66? ›
Social Security retirement benefits are increased by a certain percentage for each month you delay starting your benefits beyond full retirement age. The benefit increase stops when you reach age 70.
