For many years, 65 was considered the traditional age to start collecting Social Security benefits. While retirement age has gradually increased and will officially reach 67 by 2026, 65 remains a popular choice for those looking to claim benefits.
One reason for this is that 65 is still the eligibility age for Medicare, making it a significant milestone for retirees.
If you’re thinking about retiring at 65, you might wonder how much you can expect from Social Security. Here’s a breakdown of what to expect, the differences based on gender, and the potential consequences of claiming early.
Social Security Benefit Averages for Retirees at Age 65
The Social Security Administration (SSA) publishes annual data, including the average monthly benefits for retirees. According to the most recent SSA report, the average monthly benefit for a retired worker aged 65 was $1,563.06, which adds up to $18,756.72 annually.
However, there is a noticeable difference between men and women. On average:
Men receive $1,733.08 per month.
Women receive $1,409.73 per month.
This disparity is largely due to the fact that men tend to have higher lifetime earnings compared to women.
It’s important to note that these figures were from 2024, so by August 2025, the actual average payments are likely to be slightly higher due to inflation adjustments and other factors.
The Impact of Claiming Social Security at 65 Instead of 67
If you decide to retire at 65, you might be giving up a significant amount of benefits. Social Security applies a reduction for those who claim early. The general rule is that for every month you retire before your full retirement age (67 for those born in 1960 or later), your benefits are reduced by five-ninths of 1%.
For retiring at age 65, you’ll receive around 86.7% of your full benefit (assuming a full retirement age of 67).
Retiring at 65 will cost you a reduction of about 13.3% of the full benefit amount you’d receive at age 67.
The Benefits of Delaying Social Security Until Age 70
While it’s tempting to claim Social Security as early as 65, waiting can have a significant payoff. Delaying benefits beyond your full retirement age can increase your monthly benefit by two-thirds of 1% per month, or 8% per year. If you wait until 70, your monthly payment will be 43.1% higher compared to claiming at 65.
For example, if your benefit at age 65 is $1,563.06, waiting until 70 could increase your monthly payment to around $2,238.
How to Maximize Your Social Security Benefits
To make the most of your Social Security benefits, consider the following:
Work Longer: The amount you receive is based on your 35 highest-earning years. Working more years and earning a higher income in those years can increase your benefit.
Delay Your Retirement: As mentioned earlier, waiting until 70 will significantly increase your monthly benefit.
Supplement with Other Savings: While Social Security can provide a base, it likely won’t be enough for a comfortable retirement. Many retirees supplement their benefits with 401(k) plans, IRAs, and other savings.
The Importance of Saving for Retirement
Unfortunately, fewer people have access to pension plans today. According to the U.S. Bureau of Labor Statistics, only 15% of private industry workers had pension plans in 2024. Without a pension, it’s even more important to save through tax-advantaged retirement accounts like IRAs and 401(k)s.
Fortunately, many employers offer 401(k) plans, and about 98% of companies with these plans provide matching contributions. If you’re eligible for employer matches, you can increase your retirement savings without any additional cost to you.
The $23,760 Social Security Bonus Most People Miss
Did you know that you could earn up to $23,760 more per year in Social Security benefits? Many people overlook a simple strategy to maximize their Social Security benefits. By understanding the rules and applying the right strategies, you could boost your monthly payments and retire more comfortably.
To learn more about how to maximize your benefits and plan for retirement, consider resources like Stock Advisor, where you can discover these secrets and gain the confidence to retire with peace of mind.
Plan Ahead for a Comfortable Retirement
While 65 may still be the traditional age for retirement, the rules around Social Security are changing. Whether you decide to claim at 65, 67, or even 70, it’s essential to understand how your decisions will affect your benefits.
Planning ahead, saving in retirement accounts, and utilizing strategies to maximize your Social Security can make a significant difference in your financial security during retirement.
