Commencing your Social Security benefits at age 62, prior to reaching your full retirement age (which is 67 for those born in 1960 or later), can diminish your monthly payments and have an impact on maximizing your retirement income.
According to the Social Security Administration (SSA), the average monthly retirement benefit for recipients stood at $1,781.63 in February, highlighting the importance of maximizing your retirement income.
According to an article published by GoBankingRates, the Social Security Administration (SSA) reports that the average monthly retirement benefit for recipients is currently $1,781.63 as of February. However, this amount can vary significantly based on when you choose to start receiving your benefits, ultimately affecting your ability to maximize your retirement income.
You become eligible for Social Security at age 62, but claiming benefits before your full retirement age (which is 67 for those born in 1960 or later) results in reduced monthly payments and can have a substantial impact on maximizing your retirement income.
If you start at 62, you’ll receive only 70% of the full benefit, meaning your average monthly payment would be $1,247.40, potentially hindering your efforts in maximizing your retirement income.
The percentage of the full benefit you receive gradually increases as you delay claiming. At age 63, it’s 75% ($1,336.50), at 64, it’s 80% ($1,425.60), and at 65, it’s 86.7% ($1,544.99), offering you opportunities of maximizing your retirement income and further boost your financial security.
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When you reach 66, you’ll get 93.3% ($1,662.61), further enhancing your potential for maximizing your retirement income.
According to an article published by Yahoo Finance, delaying your retirement benefits can significantly boost your monthly payout, offering you the opportunity of maximizing your retirement income. By deferring until age 67, you’ll unlock the complete benefit of $1,782, enabling you to optimize your retirement income to its maximum potential.
Beyond 67, your benefit continues to grow by 0.7% for each month of delay, reaching a maximum of 124% at age 70, providing a substantial opportunity for maximizing your retirement income.
So, making informed decisions about when to start claiming your Social Security benefits can significantly impact your monthly income during retirement, allowing you to potentially receive a more substantial amount by delaying your claim and, ultimately, maximizing your retirement income.