If you qualify for a Social Security retirement benefit based on your work history, you can choose to start collecting it at any point between the ages of 62 and 70. For most people reading this (those born in 1960 and after), the full retirement age for Social Security is 67.
According to the latest information from the Social Security Administration (SSA), 63% of the more than 50 million retired workers who collect Social Security started collecting their monthly benefits before reaching full retirement age .
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How much do people who claim Social Security early get?
I won't keep you in suspense. The average Social Security benefit for those who choose to claim Social Security before full retirement age is significantly lower, at $1,668 per month.
According to the SSA's 2024 Social Security Statistical Supplement, the average monthly Social Security benefit for retired workers is $1,905. However, if we only consider people who didn't start collecting their benefits early, the average is $2,310.
Think about that. The average person who claims Social Security early gets just over $20,000 per year in inflation-protected retirement income. The average person who doesn't claim early gets $27,720 per year -- that's 39% more .
To be clear, this average includes beneficiaries who started collecting their benefit at any point between ages 62 and when they reached full retirement age (between ages 65 and 67, depending on their birth year).
Category | Average Monthly Benefit |
|---|
All retired workers | $1,905.31 |
Reduction for early retirement | $1,667.57 |
No reduction for early retirement | $2,310.22 |
Data source: Social Security Administration. The average is as of December 2023.
How much will your Social Security benefit be if you start early?
You can get an estimate of your future Social Security benefit based on your actual work record by viewing your most recent Social Security statement. If you haven't done so already, create an account at SSA.gov and find yours -- not only does it have a benefit estimate, but it is also full of other valuable information for pre-retirees.
Your statement will estimate your benefit at full retirement age and a few other common claiming ages, such as 62 . But in case you don't claim Social Security at exactly one of the milestone ages listed on your statement, here are the rules:
- If you claim Social Security early, your benefit will be permanently reduced by 6.67% for each year before full retirement age, up to 36 months early.
- Beyond 36 months before full retirement age, your benefit will be further reduced by 5% per year until as early as age 62.
Here's what this means. If your full retirement age is 67 and you start collecting Social Security at 62, your benefit will be reduced by 30% compared to what it would have been at full retirement age. Here's how the math works for all the early claiming ages:
Your Age When You Start Social Security | Reduction Percentage |
|---|
62 | 30% |
63 | 25% |
64 | 20% |
65 | 13.33% |
66 | 6.67% |
Data source: SSA. Assumes a full retirement age of 67.
It's also worth noting that these percentages are prorated monthly. For example, if you decide to start collecting Social Security three years and two months before reaching full retirement age, your reduction percentage would be about 20.83%.
Should you wait until full retirement age?
To be perfectly clear, there are some good reasons to start collecting Social Security early, even with the reduced benefit. If you have to retire early for health reasons, applying for Social Security could be a good idea.
It's important to realize that the system is designed so that the average retired worker will receive roughly the same amount of money throughout their lifetime, regardless of when benefits are started. In other words, if you claim early, you'll get less money per month, but you'll draw money for several more years than if you waited.
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