Planning for retirement must include making the decision of when to claim Social Security, according to a report from Yahoo Finance. Since people can start getting benefits at age 62, they have to decide whether to file early or later. For making smart decisions, it’s important to know the average age of people who claim benefits and how much they get each month.
Deciding When to Claim Social Security: Average Age of Claiming Benefits
Because of changes in retirement rules, the average age at which people start getting Social Security payments has slowly gone up over the years. The full retirement age has changed, but people who choose to leave early will get less each month, so time needs to be carefully thought out.
Data from the Social Security Administration reveals an upward trend in the average age of retirees claiming benefits, reaching 65.0 for men and 64.9 for women in 2022. This reflects a nuanced approach to retirement planning, balancing financial needs with longevity considerations.
Despite variations in claiming ages, retirees are urged to weigh the implications carefully, considering factors such as healthcare coverage and financial stability. While age 65 often symbolizes retirement, delaying benefits until full retirement age or even age 70 may maximize lifetime benefits, as indicated by recent studies.
Deciding When to Claim Social Security: Average Monthly Benefits
The average monthly benefit awarded to new retirees in 2022 stood at $1,938.75, demonstrating the financial support provided by Social Security. However, variations exist based on claiming age, with early claimants receiving lower payouts compared to those delaying benefits.
While age 65 marks eligibility for Medicare, claiming Social Security at this age may not be optimal for all retirees. Studies suggest delaying benefits until at least full retirement age, or even age 70, could maximize lifetime wealth, highlighting the importance of strategic planning in retirement.