For nearly 90 years, Social Security has been a vital financial safety net for millions of Americans in retirement, helping to keep many above the poverty line. When deciding to claim benefits, it’s crucial to understand how your age at the time of claiming can significantly impact the amount you’ll receive.
Claiming Social Security at the right age is a decision that permanently affects your monthly benefit amount.
Understanding Average Benefits at Age 70
As of the end of 2024, the average monthly benefit for someone who claims Social Security at age 70 is $2,148.12, which totals around $25,777 annually. The benefit amount varies between genders due to differences in lifetime earnings. For men, the average benefit at age 70 is $2,389.95, while for women, it’s $1,909.42.
How Claiming at Age 70 Increases Your Monthly Benefit
For those born in 1960 or later, the Full Retirement Age (FRA) is 67. This is the age at which you can receive your full monthly benefit, known as the Primary Insurance Amount (PIA). The Social Security Administration then adjusts the amount based on whether you claim before or after reaching your FRA.
If you choose to delay your benefits beyond your FRA, your monthly benefit increases by 2/3 of 1% per month, or 8% annually. This increase continues until you reach age 70, at which point the benefit is maximized.
After age 70, no further increase occurs, so claiming benefits at this age is generally the latest option for maximizing monthly payments.
For example, if your PIA at age 67 is $2,000, delaying your benefits until 70 will increase your monthly amount by 24%, bringing it to $2,480. Along with the annual cost-of-living adjustment (COLA), this explains why the average benefit is higher at age 70 than at younger ages.
The $23,760 Social Security Bonus That Many Retirees Miss
Many retirees aren’t aware of a lesser-known Social Security bonus that can provide an extra $23,760 over the course of their retirement. This Social Security “secret” is often overlooked, even though it could significantly boost retirement income.
By strategically planning when to claim benefits and utilizing other Social Security strategies, retirees can make the most of their Social Security benefits, ensuring a stronger financial future.
Deciding when to claim Social Security is a crucial decision that directly impacts the financial stability of retirees. By understanding how delays can increase monthly benefits and taking advantage of little-known Social Security strategies, retirees can maximize their retirement income and secure a better future.
