Last year, about 25% of new retired workers started Social Security at age 62. That is the earliest possible claiming age, so those individuals received the smallest possible benefit. Meanwhile, about 10% of newly awarded retirees started Social Security at age 70. That is the latest sensible claiming age, so they received the largest possible benefit.
Statistically speaking, 90% of retirees will maximize their lifetime Social Security income by starting at age 70, according to a study published by the National Bureau of Economic Research. That means most Americans are shortchanging themselves by claiming retirement benefits too early.
Read on to see the average Social Security payout at different ages, and to learn how claiming age impacts benefits.
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Here's 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 information in the chart below comes from a biannual report last updated in June 2024. It shows the average monthly Social Security benefit for retired workers between the ages of 62 and 70.
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 |
Data source: Social Security Administration. Note: Payments have been rounded to the nearest dollar.
As shown above, the average Social Security benefit tends to increase with age, such that the average 70-year-old retiree receives an additional $757 in monthly benefits compared to the average 62-year-old retiree. Meanwhile, the average 66-year-old retiree receives a monthly benefit somewhere between the two extremes.
Several variables influence Social Security payouts, but the trend shown in the chart is primarily due to discrepancies in claiming age. In other words, all else being equal, a retired worker will get the smallest possible benefit at age 62 and the biggest possible benefit at age 70 based on their personal circumstances.
How Social Security benefits are calculated for retired workers
The Social Security Administration considers two major variables when calculating retired-worker benefits: lifetime earnings and claiming age. The two-step process detailed below explains exactly how those variables influence the final payout.
- Step 1: A formula is applied to the inflation-adjusted earnings from the 35 highest-paid years of a worker's career to determine their primary insurance amount (PIA). The PIA is the benefit a worker will get if they start Social Security at full retirement age (FRA), which is 67 for anyone born in 1960 or later.
- Step 2: The PIA is adjusted for early or delayed retirement. Retirees who claim Social Security before FRA get a smaller benefit, meaning they receive less than 100% their PIA. Retirees who start Social Security after FRA get a bigger benefit, meaning they receive more than 100% of their PIA.
There are two important conditions to the information above. First, eligibility for retirement benefits begins at age 62, so no one can claim earlier. Second, delayed retirement credits stop accumulating at age 70, so no one should ever claim later.
The chart below details the relationship between birth year and full retirement age. It also shows the benefit (as a percentage of PIA) retired workers in each age group will receive if they claim Social Security at ages 62 and 70. In other words, the chart details the smallest and largest possible payouts across different age 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: Social Security Administration.
The chart above makes it clear that Social Security is highly dependent on claiming age. Indeed, retirees born in 1960 or later can increase their benefit by 77% by simply claiming Social Security at age 70 as opposed to age 62.
Here is an example: The average retired worker had a PIA of $2,042 last year. Assuming a birth year of 1960 or later, that person would receive about $1,429 per month if they claimed Social Security at age 62 (i.e., 70% multiplied by $2,042). But the same individual would receive about $2,532 per month if they claimed Social Security at age 70 (i.e., 124% multiplied by $2,042).
The exact dollar amount will vary from person to person due to differences in lifetime earnings, but the percent increase will remain constant. That is to say, $2,532 is 77% higher than $1,429.
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