The average Social Security benefit varies depending on how old you are when you claim benefits. And you may be surprised to find that it’s possible to get a lot more money by waiting to put off a benefits claim.
But just how much extra can you get? And why are the average checks so much larger for those who claimed late? Here’s what you need to know.
How much extra can you get by delaying your Social Security Check?
According to data from the Social Security Administration from the end of 2022:
- The average benefit was $1,288 monthly among those who claimed benefits at 62.
- It was $2,400 monthly for those who claimed at 67 — or $1,112 more per month than the average benefit among those who claimed at 62.
- It was $3,065 for those who waited until 70 to start benefit checks coming — or $1,777 higher than the average benefit among those who started their checks at the earliest possible age.
As these averages show, the longer you put off your claim for benefits, the more money you’re likely going to end up receiving to help you afford your retirement.
Why is the average benefit so much bigger for late filers?
The average benefit goes up depending on the age when you claim it in part because of early filing penalties and delayed retirement credits.
- Early filing penalties apply when you claim benefits before full retirement age (FRA) and they reduce your monthly check for each month you’re early.
- Delayed retirement credits apply after FRA until age 70 and they increase your monthly check for each month you wait.
Delaying can make a big difference because these credits and penalties are substantial. For each of the first three years you claim benefits early, you reduce your payments by around 6.7%. And for any year before that, benefits are reduced by an additional 5%. On the other hand, each year of delay increases benefits by about 8%. This makes a big impact.
However, it’s also important to know the average benefit is a lot higher at 70 than at younger ages for another reason. To delay until 70 to get the max benefit you’ll have had to either work until 70 or draw on your savings to support yourself without any Social Security benefits coming in for many years after retiring.
Many people can’t do that. And high earners are more likely to be able to since they’ll have the spare cash to save and may be in jobs that they can do even as they age. As a result, people who are able to wait until 70 to start their Social Security often have made more money and thus have a higher standard benefit because of it, since Social Security benefits are based on earnings throughout your career.
So, the bottom line is, you can wait until 70 and will undoubtedly get more money if you do. The exact amount extra you get is going to depend on your individual earnings over your career. Still, it’s worth giving serious consideration to whether waiting for this extra money will give you more of the retirement security you deserve.
