Did you know that the average Social Security benefit at age 70 may be surprising? It is more than likely that if you are still working you could collect even a higher check or direct deposit!
You can start claiming Social Security benefits at any point between the ages of 62 and 70. If you begin earlier, you’ll receive a smaller amount but a greater number of them. Conversely, postponing your claim will increase your payments, though you’ll receive fewer overall.
Reasons to claim Social Security
Deciding when to start collecting your Social Security benefits is a significant decision that requires careful consideration. Many individuals choose to start collecting early, and in many cases, they need to. This could be due to:
- Job loss
- Health setbacks
- Immediate income needs
Starting early might also be a wise choice if you have a higher likelihood of living a shorter-than-average life.
Yet, for most Americans, the best idea is to wait until you are a 70-year-old, if possible. Delaying your benefits can significantly increase your monthly checks, providing more financial security in your later years.
Curious about how much you’ll collect if you wait until you turn 70 to claim Social Security? The amount you’ll receive hinges on your earnings history, which is calculated by Social Security’s benefit calculator.
Check Your Future Benefits Easily
However, using a Social Security Statement can show you possible amounts at different stages in your life. Instead of manually crunching numbers, the simplest way to get an accurate estimate is to set up a my Social Security account on the Social Security Administration (SSA) website.
This account allows you to log in anytime to view the latest projections of your future benefits based on your chosen retirement age. Visit it at https://www.ssa.gov/myaccount/
Average Benefits at Age 70
As of December 2022, the average benefit for those who waited until age 70 was approximately $1,965 per month (rounded), according to the latest data from the SSA. Annually, this amounts to about $23,580. Compared to all retired workers’ average payments, it is slightly higher since it is $1,918.
Understanding Cost-of-Living Adjustments (COLAs)
It’s essential to remember that most years include cost-of-living adjustments (COLAs). For instance, the COLA for 2023 was 3.2%. This adjustment would have increased the average benefit to $2,030 per month (rounded) or roughly $24,360 annually.
However, these figures are averages—your personal benefit could be higher or lower depending on your unique earnings history. To sum up, setting up a my Social Security account provides you with an easy and accurate way to monitor your future benefits, ensuring you make well-informed decisions about your retirement.
