As a retiree, chances are good you'll rely on your Social Security benefits to help you cover your cost of living. These benefits provide thousands of dollars in monthly income and, unlike your savings, they can't run out as long as you're alive. While you can't live on them alone, you do need to make sure you understand how much money they will provide, as well as how decisions you make regarding them will affect that monthly amount.
That's why this is the most important Social Security table that you'll ever see. The information within it makes it easy to understand how your choices impact your retirement income, so you don't make a decision about your benefits that you come to regret.
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This crucial Social Security table will show you all you need to know
Every retiree gets a standard Social Security benefit based on the wages earned over their career. But seniors who don't claim their retirement checks at exactly their designated full retirement age (FRA) won't get this standard benefit.
FRA is between 66 and four months and 67, depending on birth year, while benefits become available at 62. Anyone who begins receiving payments before FRA will see a reduction to their standard benefit, while anyone who delays and doesn't get their first payment until later will have the chance to increase it.
Because payments change based on the age you claim them, it's crucial to make an informed choice about when you'll first receive your monthly Social Security retirement income. That's why this table is the most important one you'll ever see. It shows how the average monthly Social Security benefit of $1,657 could be affected by filing for benefits at different ages. It's based on someone who has a full retirement age of 67.
| Claiming Age | Monthly Benefit | Benefit Reduction/Increase |
|---|---|---|
| 62 | $1,160 | -30% |
| 63 | $1,243 | -25% |
| 64 | $1,326 | -20% |
| 65 | $1,437 | -13.3% |
| 66 | $1,546 | -6.7% |
| 67 | $1,657 | None |
| 68 | $1,790 | +8% |
| 69 | $1,922 | +16% |
| 70 | $2,055 | +24% |
Data source: Social Security Administration. Calculations by author.
As you can see, the difference in your monthly income can be quite dramatic. Your decision to begin benefits at the youngest age you're allowed of 62 would leave you with $895 per month less than the amount you would get each month if you waited as long as possible to max out your income.
What's the right age to claim your benefits?
This Social Security table gives you insight into how a decision about when to start getting payments affects the money you'll have to live on. It drives home the point that if you opt for an earlier payment, you'll get much smaller checks -- although of course you get many more of them. If you delay, your income rises dramatically, but you miss out on years of money.
Ultimately, you should consider your health, how long you're likely to live, and your preferences regarding whether you'd rather start payments ASAP even if that means getting less money. This will guide you in your choice about when the best claiming age is for your personal situation.
