I won't keep you in suspense: The average retired worker who collects Social Security receives a monthly benefit of $1,275, according to the latest Social Security Statistical Supplement.
One major caveat is that this is the average benefit as of late 2022, which is the last full year for which we have data broken down by age. Beneficiaries have received cost-of-living adjustments, or COLAs, since then, and if we apply them, the average benefit as of 2024 for a 62 year old is likely to be about $1,316.
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How much does the average retired worker get?
This is significantly less than the average retired worker's benefit of $1,917. While eligible Americans can apply for Social Security at any time between ages 62 and 70, your benefit will be permanently reduced if you apply before you reach full retirement age (67 for most people reading this).
In fact, if your full retirement age is 67, which is the case for everyone born in 1960 or later, claiming Social Security at age 62 can result in a permanent 30% reduction. Specifically, Social Security benefits are reduced by 6.67% per year before your full retirement age for the first three years plus another 5% per year beyond three years early.
Waiting can make a big difference
On the other hand, waiting a bit longer to take Social Security can have a big impact. If you're entitled to the average retirement benefit of $1,316 at age 62, waiting until you turn 63 would increase your initial benefit to approximately $1,410.
Social Security is the only source of inflation-protected retirement income that most people have, and that's especially true for younger people, who are far less likely to have pensions. While you can claim Social Security at 62, it's important to take a step back and decide if doing so is truly the best idea.
