Are you curious about the average Social Security benefit for a 70-year-old? It might surprise you! If you’re still working, you might even collect a higher check or direct deposit.
Understanding the potential benefits and the impact of when you start claiming can help you make informed decisions about your retirement.
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Claiming Social Security: Timing Matters
You can start claiming Social Security benefits at any time between the ages of 62 and 70. If you begin earlier, you’ll receive smaller amounts but more payments overall. Conversely, delaying your claim increases your monthly payments, although you’ll receive fewer total payments over your lifetime.
Reasons to Claim Early
Deciding when to start collecting your Social Security benefits is significant and requires careful consideration. Many individuals opt to start collecting early, and in many cases, they need to due to:
- Job Loss
- Health Setbacks
- Immediate Income Needs
Starting early might also be wise if you have a higher likelihood of living a shorter-than-average life. However, for most Americans, the best strategy is to wait until age 70, if possible. Delaying your benefits can significantly increase your monthly checks, providing more financial security in your later years.
Average Benefits at Age 70
Curious about how much you’ll collect if you wait until you turn 70 to claim Social Security? The amount you’ll receive depends on your earnings history, calculated by Social Security’s benefit calculator.
As of December 2022
The average benefit for those who waited until age 70 was approximately $1,965 per month, which amounts to about $23,580 annually. This is higher than the average payment for all retired workers, which is $1,918 per month.
Cost-of-Living Adjustments (COLAs)
Most years include cost-of-living adjustments (COLAs). For example, the COLA for 2023 was 3.2%. This adjustment increased the average benefit to approximately $2,030 per month or roughly $24,360 annually.
Your personal benefit could be higher or lower depending on your unique earnings history.
Check Your Future Benefits Easily
Instead of manually crunching numbers, the simplest way to get an accurate estimate of your future benefits is to set up a my Social Security account on the Social Security Administration (SSA) website.
This account allows you to log in anytime to view the latest projections of your future benefits based on your chosen retirement age. Visit SSA’s my Social Security page to set up your account.
Deciding when to claim Social Security benefits is a critical decision that impacts your financial security in retirement. While starting early may be necessary for some, waiting until age 70 can significantly increase your monthly benefits.
Setting up a my Social Security account provides you with an easy and accurate way to monitor your future benefits, ensuring you make well-informed decisions about your retirement.
FAQs
When can I start claiming Social Security benefits?
You can start claiming between ages 62 and 70.
How much is the average benefit at age 70?
Approximately $1,965 per month as of December 2022.
What is a COLA?
Cost-of-Living Adjustment, which increases benefits based on inflation.
How can I check my future benefits?
Set up a my Social Security account on the SSA website.
Why should I wait until age 70 to claim benefits?
Delaying your benefits increases your monthly payments, providing more financial security.
