Social Security is more than just a social program for many retirees. Just over 20% of adults age 50 and older have no other source of retirement income outside of their benefits, according to a 2023 survey from the Nationwide Retirement Institute, so it's wise to make the most of your checks.
Claiming at the right age will go a long way toward maximizing your benefits. You can file for benefits as early as age 62, but for every month you wait (up to age 70), you'll receive higher payments. While there are advantages to both filing early and delaying, it's important to know exactly how your age will affect your benefit amount.
Everyone's situation is different, but it can be helpful to see the average benefit at various ages -- as well as a few strategies to increase the size of your checks.
Image source: Getty Images.
The average Social Security benefit by age
Your age is one of the most important factors influencing your benefit amount. To receive the full benefit you're entitled to based on your work history, you'll need to wait to claim until your full retirement age (FRA) -- which is age 67 for everyone born in 1960 or later.
By claiming earlier than your FRA, your benefits will be permanently reduced by up to 30%. If you delay benefits past your FRA, you'll collect your full benefit amount plus a bonus of between 24% and 32% per month, depending on your FRA.
Other factors affecting your benefits include the number of years you've worked and your earnings history throughout your career. Because those figures can vary widely from person to person, your benefit may look much different from the average.
That said, it can still be helpful to see where you stand. According to the Social Security Administration's most recent data released in December 2023, here's what the average retired worker receives in benefits at every age from 62 to 70:
| Age | Average Monthly Benefit |
|---|---|
| 62 | $1,298 |
| 63 | $1,339 |
| 64 | $1,460 |
| 65 | $1,563 |
| 66 | $1,740 |
| 67 | $1,884 |
| 68 | $1,948 |
| 69 | $1,945 |
| 70 | $2,038 |
Source: Social Security Administration. Table by author.
If you're going to be relying heavily on your benefits in retirement, these numbers might seem a little low. The good news is that there are factors within your control to increase your benefit amount, sometimes by hundreds of dollars per month.
1. Delay claiming Social Security
Delaying claiming benefits is one of the most straightforward and effective ways to boost your monthly checks. The average retired worker collects around $739 more per month at age 70 than at age 62, which can make an enormous difference in retirement.
Even if you can't wait until age 70 to file, delaying by even a year or two can still increase your payments by hundreds of dollars per month. If money is going to be tight in retirement, every dollar from Social Security can go a long way.
2. Work for at least 35 years
The Social Security Administration calculates your benefit by taking an average of your wages throughout the 35 years of your career you earned the most. That number is then run through a complex formula and adjusted for inflation, and the result is the amount you'll collect at your FRA.
If you've worked fewer than 35 years by the time you begin claiming, you'll have zeros added to your earnings average to account for the time you were not working. That will result in a smaller average and a lower benefit amount.
Even if you have worked 35 years already, it can sometimes still be helpful to work a little longer. Chances are you're earning more now than you were at the start of your career. By working longer now, you'll have more higher-earning years included in your average, which will result in a bigger benefit.
3. Get as close as you can to the wage cap
The maximum taxable earnings limit is the highest income subject to Social Security taxes, and the closer you can get to this wage cap, the higher your benefit will be.
For most people, reaching the limit itself is incredibly difficult, if not impossible. The cap changes from year to year to account for inflation, but in 2024, it's a whopping $168,600 per year.
However, you don't need to actually reach the wage cap to see an increase in your benefit. Boosting your income even slightly will still result in larger checks, and the closer you can get to that $168,600 annual limit, the more you'll receive from Social Security.
Social Security can make or break retirement for many people, so it's wise to understand the factors affecting your benefit amount. With the right strategy, it's possible to earn far more than average and enjoy a more financially secure retirement.
