How Retirees Can Boost Monthly Income through Smart Social Security Strategies
How Social Security benefits for retired workers are calculated
Claiming age has a profound impact on Social Security benefits for retired workers. The Social Security Administration publicly releases anonymized benefit data to provide insight into how benefits are calculated.
Key Insights:
- Roughly one-quarter of retired workers start collecting benefits at age 62, though delaying until age 70 can substantially increase payouts.
- By claiming after full retirement age, workers can receive more than 100% of their Primary Insurance Amount (PIA).
How the average retired worker can increase their benefit by $1,071 per month
The average PIA for newly awarded retired workers in 2022 was $1,984, with potential for increasing monthly benefits by $1,071 by claiming Social Security at age 70 instead of age 62.
Assuming the average PIA continues to rise by 3.3% annually, retirees could secure an additional $13,716 per year by claiming at age 70. This demonstrates the potential long-term financial benefits of strategic claiming strategies.
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.