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The age at which a person begins to collect their Social Security retirement benefits in the United States directly affects the amount they will receive each month. Although it is possible to claim benefits starting at age 62, waiting until full retirement age or even until age 70 can make an important difference in income.
According to the Social Security Administration (SSA), those with a full retirement age of 67 can receive 30% less if they start collecting at 62. By contrast, waiting until 70 allows them to receive 24% more than the full benefit.
These differences apply to people born in 1960 or later, whose full retirement age is 67. For those born earlier, the percentages may vary.
How much Social Security is paid at ages 62, 67, and 70?
The SSA states that the monthly benefit depends, among other factors, on the age at which you apply for retirement.
For those whose retirement age is 67, the percentages are as follows:
- At age 62, 70% of the full benefit is received, which represents a 30% reduction.
- At age 67, 100% of the corresponding benefit is collected.
- At age 70, 124% of the full benefit is received, that is, a 24% increase.
Why is Social Security reduced if claimed at age 62?
The Social Security Administration allows retirement benefits to begin at age 62, but applies a reduction when the claim is made before reaching full retirement age.
For those who must wait until 67 to collect the full benefit, moving retirement up to 62 means 60 months early.
In that case, the total reduction is 30% and, in general, it remains in effect for the period during which the person receives their retirement benefits.
The advantage of claiming benefits early is that payments begin sooner. However, the monthly payment is lower than if one had waited until full retirement age.
What happens if a person waits until age 70 to retire?
Those who delay the start of their benefits after reaching full retirement age can receive increases through the so-called delayed retirement credits.
According to the official SSA table, for a person whose full retirement age is 67, the benefit increases as follows:
- At age 67: 100% of the benefit.
- At age 68: 108% of the benefit.
- At age 69: 116% of the benefit.
- At age 70: 124% of the benefit.
This means that waiting three years after age 67 can increase the monthly payment by 24%.
However, the benefit stops increasing for delaying the claim once age 70 is reached. Therefore, waiting beyond that age does not generate additional credits for delayed retirement.
What should you consider before applying for Social Security?
The age chosen to retire depends on each person’s financial needs. Collecting from age 62 allows you to receive payments earlier, but in a smaller amount, while waiting until 70 increases the monthly benefit.
In addition, those who postpone retirement should review their Medicare enrollment starting at age 65, since delaying it can generate penalties in certain cases.