Understanding How Claiming Age Impacts Social Security Benefits

Thursday, 4 April 2024, 08:00

Discover the impact of claiming Social Security benefits at different ages and how it affects the payouts. Gain insights into the average benefit amounts at 62, 66, and 70 and learn about the factors that influence the calculations. Find out why delaying retirement benefits until age 70 can significantly increase your lifetime income.
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Understanding How Claiming Age Impacts Social Security Benefits

Understanding Social Security Benefits

Retired workers can substantially increase their Social Security benefit by claiming at age 70 rather than age 62. Many Americans lack essential knowledge regarding Social Security benefits, leading to potential financial consequences.

The Impact of Claiming Age

For instance, all else being equal, payouts are much higher when retirees claim Social Security at age 70 rather than age 62. Yet, nearly 25% of newly awarded beneficiaries started Social Security at age 62 in 2022, and less than 10% started at age 70.

  • Nearly 90% of retired workers rely heavily on Social Security checks for income.
  • Retired workers in older age groups typically receive larger payments due to claiming age differences.
  • Understanding how claiming age and lifetime income affect benefits is crucial.

Calculating Social Security Benefits

  1. Income is adjusted for wage inflation during a worker's employment years.
  2. Highest-paid 35 years are converted to the average indexed monthly earnings (AIME) amount.
  3. The AIME is used to find the primary insurance amount (PIA).
  4. PIA is adjusted for early or delayed retirement, impacting benefit amounts.

To be clear, experts recommend maximizing lifetime income by delaying retirement benefits until age 70.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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