The average monthly Social Security benefit for retired workers at age 70 is about $757 more than the average payout at age 62.
Last year, nearly one-quarter of newly awarded retired workers claimed Social Security at age 62, meaning they started benefits as soon as possible. And the average retired worker claimed Social Security at age 65.
Meanwhile, just one-tenth of new retired workers delayed Social Security until age 70, meaning a very small fraction of the population maximized delayed retirement credits to earn the biggest benefit possible based on their earnings records.
Statistically speaking, the vast majority of Americans are leaving money on the table when they claim Social Security. A study published by the National Bureau of Economic Research suggests more than 90% workers would optimize their benefits by claiming at age 70.
Of course, different people have different priorities and financial circ*mstances, so there is no single best age to start Social Security. But future retirees should understand how claiming age factors into the equation. Read on to see the average retired-worker benefit at ages 62, 65, and 70.
Image source: Getty Images.
The average Social Security benefit for retired workers at different ages
The Social Security Administration periodically publishes anonymized benefit data to promote transparency and improve public understanding. The chart below pulls data from a recently updated biannual report. It details the average monthly Social Security benefit paid to retired workers between ages 62 and 70 in June 2024.
Age | Average Retired-Worker Benefit |
|---|---|
62 | $1,311 |
63 | $1,344 |
64 | $1,436 |
65 | $1,583 |
66 | $1,774 |
67 | $1,894 |
68 | $1,947 |
69 | $1,972 |
70 | $2,068 |
Source: Social Security Administration. Note: Payments have been rounded to the nearest dollar.
As shown above, the average Social Security payout generally increases with age, such that the average 70-year-old retiree gets about $757 per month more than the average 62-year-old retiree.
Readers should focus on three ages -- 62, 65, and 70 -- because they cover the entire spectrum of possible outcomes. In other words, 62 is the earliest possible claiming age, 70 is the latest sensible claiming age, and 65 provides a data point somewhere in the middle.
Several factors affect Social Security payouts, but the trend illustrated by the chart is primary driven by differences in claiming age. All else equal, a retired worker will receive the smallest possible benefit at age 62 and the biggest possible benefit at age 70.
Step-by-step instructions for how Social Security benefits are calculated
Social Security benefits are determined based on work history, lifetime earnings, and claiming age. Those variables come together in the two-step process detailed below:
- Step 1: The first step is determining the primary insurance amount (PIA). A formula is applied to the inflation-adjusted income from the 35 highest-paid years of a retired worker's career to determine their PIA. Importantly, workers with less than 35 years of work history will have zeroes factored into the equation. The PIA is the benefit a worker will receive if the claim Social Security at full retirement age (FRA).
- Step 2: The second step is adjusting the PIA for early or delayed retirement. Workers that claim Social Security before FRA receive less than 100% of their PIA. Workers that claim Social Security after FRA receive more than 100% of their PIA. The only qualifications are that no one can claim retirement benefits before age 62, and there is no advantage to claiming later than 70.
The chart below shows how birth year relates to FRA. It also details the benefit (as a portion of PIA) a retiree would get by claiming Social Security at ages 62 and 70. In other words, the chart details the smallest and largest payout for all FRA groups.
Birth Year | Full Retirement Age | Benefit at Age 62 | Benefit at Age 70 |
|---|---|---|---|
1943-1954 | 66 | 75% | 132% |
1955 | 66 and 2 months | 74.2% | 130.6% |
1956 | 66 and 4 months | 73.3% | 129.3% |
1957 | 66 and 6 months | 72.5% | 128% |
1958 | 66 and 8 months | 71.7% | 126.6% |
1959 | 66 and 10 months | 70.8% | 125.3% |
1960 and later | 67 | 70% | 124% |
Data source: The Social Security Administration.
As shown in the chart, workers can substantially increase their Social Security income by simply delaying benefits until age 70 rather than claiming at age 62.
Last year, the average retiree had a PIA of $2,042, meaning they would have received $2,042 per month in benefits had they claimed Social Security at full retirement age. However, assuming a birth year of 1960 or later, that same worker would have received $1,429 per month (70% of their PIA) had they claimed Social Security at age 62. And they would have received $2,532 per month (124% of their PIA) had they claimed Social Security at age 70.
The dollar amount will vary from person to person based on differences in PIA, but the percent increase will remain constant. In other words, workers born in 1960 or later can increase their benefit by 77% by claiming Social Security at age 70 rather than age 62.
