Social Security is a significant income source for millions of retirees. A whopping 88% of baby boomers expect to rely on their benefits in retirement, according to a 2024 report from the Transamerica Center for Retirement Studies, with 43% of boomers saying Social Security will be their primary source of income.
Boosting your payments even slightly can have an enormous impact on your retirement, especially if your savings aren't as robust as you'd like.
While there are many ways to increase your benefit amount (such as working longer or increasing your income), there's one simple move that could boost the average retiree's payments by $586 or more each month. Here's everything you need to know.
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Your age will permanently affect your benefit amount
One of the biggest retirement decisions you'll need to make is the age you'd like to begin claiming benefits.
Age 62 is the earliest you can file, and it's also one of the most popular choices among retirees. Roughly one-quarter of men and women begin claiming at 62, according to 2022 data from the Social Security Administration.
However, filing as early as possible will also significantly reduce your payments -- and these reductions are permanent. The average benefit amount at age 62 is around $1,298 per month, 2023 data from the Social Security Administration revealed. The longer you wait to claim, though, the more you can collect each month.
| Age | Average Monthly Benefit Among Retired Workers |
|---|---|
| 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 |
At age 67, the average retiree collects around $586 more per month compared to age 62. This age is also the full retirement age for everyone born in 1960 or later, meaning you'll receive 100% of the benefit you're entitled to based on your work history.
You can delay benefits past your full retirement age, too, which will earn you a bonus on top of your full benefit. Waiting until age 70 will earn you the highest possible payments, and the average benefit at that age is a whopping $740 more per month than the average at age 62.
What age should you file for benefits?
Despite the permanent reduction in benefits, age 62 can still be a good choice for some retirees. If you plan to retire in your early 60s, for example, taking benefits early can reduce the amount you'll need to pull from your retirement fund -- helping your savings last longer.
On the other hand, if your main goal is to earn as much as possible each month from Social Security, claiming at age 70 may be the way to go. If your savings are falling short, delaying benefits can set you up for a far more financially secure retirement.
Age 67, or your full retirement age, can be a smart way to compromise between claiming early and delaying. The average retiree collects around $154 less per month at age 67 compared to 70, but for many, that's a worthwhile trade-off for being able to retire a few years earlier.
The age you begin claiming is one of the most important factors influencing your benefit, and it's also one of the easiest factors to control. By making this decision carefully based on your goals, you can make the most of Social Security and set yourself up for a more enjoyable retirement.
