Social Security is more than just a safety net for retired and disabled workers and their dependents.
For many of those receiving Social Security, the benefits represent a lifeline. According to the Social Security Administration, Social Security benefits make up the biggest source of income for most Americans over the age of 65.
More than 65 million Americans receive Social Security, and of those over 65, Social Security represents about 30% of their income.
Considering the importance of Social Security, you can understand why you might want to know the average benefit to expect at your age group. If you're thinking about taking Social Security at age 62, the earliest possible enrollment age, keep reading to see what you need to know, as well as the average benefit at age 62.
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The pros and cons of taking Social Security at age 62
The decision of when to take Social Security is a personal one, and there is no right answer for when to start collecting it. That will depend on your personal circumstances and your financial situation. For example, if you're employed and content to stay in the workforce, you might choose to delay receiving Social Security until age 70, the last year you can start collecting it. On the other hand, if you have health problems or need to care for a loved one, you might choose to collect Social Security benefits at 62.
The Social Security Administration incentivizes waiting to receive your benefits. For example, a 70-year-old who starts collecting in 2024 would get 132% of the monthly benefit they would have gotten if they had retired at full retirement age, which is between ages 66 and 67, depending on the year in which you were born.
In contrast, if you're turning 62 in 2024 and you choose to start collecting Social Security, your benefit will be reduced by 30%. If you're hesitant to lose out on your full retirement benefits, you should know that the payments are structured according to life expectancy, so that the total will be roughly the same over the course of your life if you have an average life expectancy.
If you're thinking of starting to collect Social Security at 62, you should know you're not alone. 62 is one of the most popular ages to start collecting Social Security, behind only 66 or full retirement age. According to Social Security Administration data, in 2022, 22.9% of men chose to start collecting Social Security benefits, while 24.5% of women started then.
The average Social Security check for a 62-year-old
According to Social Security data from June 2023, there were 613,960 62-year-old retirees collecting Social Security, and the average benefit they received was $1,276.50 per month. Not surprisingly, that's the lowest benefit for any age, since beneficiaries who start collecting at 62 are penalized the most.
The average monthly benefit for all age groups was $1,837.29, and the age with the highest benefit was 70, at $1,970.24.
How to increase your Social Security benefit
If you're 62 and want to increase your benefits, there are two ways to do so. The easiest way to get a higher benefit is just to delay the age at which you start taking Social Security. The closer you can get to 70, the higher your benefit will be once you start collecting.
The other way to increase your benefit is by raising your Average Indexed Monthly Earnings (AIME), or the figure that's used to determine your Social Security benefit. Your monthly check is based on your 35 highest indexed earning years, meaning they're adjusted for inflation. If you didn't spend 35 years in the workforce, you could increase your Social Security significantly by continuing to earn money, as that income would replace zeros on your AIME.
Depending on your circumstances, it might not be worth it to you to stay in the workforce. One of the best reasons to start collecting Social Security at 62 is because you need the money. You earned it, after all. It's your money.
