Social Security is undoubtedly a complex program for numerous reasons. One of the more perplexing aspects of the program is that retirees can choose when they want to claim Social Security benefits. Typically, most retirees can start claiming benefits as early as 62 and as late as 70. There are different pros and cons, regardless of when one claims benefits, and different reasons to claim based on where one is in life.

Here are the average Social Security benefits at ages 62, 67, and 70.

How benefits are calculated

Social Security benefits are based on a complex calculation. Therefore, retirees receive a different level of benefits based on several factors, including the age at which they claim them. The general rule of thumb is that the earlier one claims benefits, the less they will receive. The longer they delay benefits, the more they will receive.

The benchmark age is known as full retirement age (FRA), or when a retiree can receive the full amount of benefits they are entitled to. For people born in 1960 or later, the FRA is 67. If you were born before 1960, then a retiree's FRA will occur at various times in one's 66th year. The Social Security Administration (SSA) bases one's benefits on several factors: number of years worked, career earnings, and the age one claims.

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Essentially, the SSA considers a retiree's highest 35 years of earnings, as the more one earns, the more they pay in Social Security payroll taxes and the more they are entitled to receive. If a retiree has less than 35 years of working history, this can significantly impact one's benefits because the SSA uses a zero for any years not worked below the 35-year threshold.

Lastly, the age at which one claims benefits is very important. The SSA lowers benefits by a certain percentage for each month one claims prior to their FRA. So, if a retiree's FRA is 67 and they choose to claim at age 62, they can see their benefits lowered by 30%.

On the other hand, the SSA will also increase one's earnings by a certain percentage each month they delay past their FRA. If a retiree delays claiming benefits until age 70, the longest one can put off claiming benefits, they could see their benefits increase by 24%. The idea is to ensure -- as much as possible -- that retirees, regardless of what age they claim benefits at, are receiving their entitled amount over their lifetime.

Average Social Security benefits for ages 62, 67, and 70

Here are the average benefit amounts for age 62, the earliest a retiree can claim; age 67, the full retirement age for people born in 1960 or after; and age 70, the latest age one can put off claiming benefits, according to the SSA's Office of the Actuary:

• In December 2023, the average monthly Social Security check for retirees who were 62 was roughly $1,298, or $15,576 per year.
• For the average 67-year-old retiree, the average monthly check was roughly $1,884, or $22,608 per year.
• For the average 70-year-old retiree, the average monthly check was roughly $2,038, or $24,456 per year.

Interestingly, the average annual amount for retirees age 67 is 45% higher than the average amount at age 62. This could be due to people earning their highest salaries in their early to mid-60s, which may contribute to a higher level of entitled benefits. However, the average amount at age 70 is 57% higher than the average amount at age 62, which makes sense, considering that retirees claiming at age 62 take a 30% haircut, while those at age 70 can add 24% in benefits by waiting.

Ultimately, there is no right decision for when to claim benefits. If you are struggling to keep up with your regular expenses at age 62 or expect a significant increase in healthcare costs, it makes sense to take benefits right away. However, if you can wait and maximize your benefits, that also makes sense.