The typical 62-year-old person receiving Social Security benefits collects significantly less than the average retired worker. This is because seniors get a reduction of about 30% for early filing.
Let’s dive right in: According to the latest Social Security Statistical Snapshot for June 2024, the average retired worker (all ages) receives a monthly benefit of 1,918 dollars.
What is the average Social Security for 62-year-olds in the USA?
As of late 2022, it was $1,275. It’s important to note that this average benefit is based on data from late 2022, the most recent full year with age-specific breakdowns. Since then, beneficiaries have received cost-of-living adjustments (COLAs). Factoring in these adjustments, the average benefit for a 62-year-old in 2024 is likely to be around $1,315.
Comparatively, this amount is significantly less than the average retired worker’s benefit, which is $1,918 per month. While eligible Americans can apply for Social Security anytime between ages 62 and 70, it’s crucial to remember that applying before reaching full retirement age, 66 years and 8 months old in 2024 and 67 for most American workers, will result in a permanent reduction of your benefit.
- The average monthly benefit for a 62-year-old is around $1,315 as of 2024.
- This is considerably less than the overall average retired worker’s benefit of $1,918.
- Applying for Social Security before full retirement age will permanently reduce your benefit.
Understanding the nuances of Social Security benefits can help you make informed decisions about your retirement. Keep in mind the impact of COLAs and the timing of your application to maximize your benefits.
Understanding the timing of claiming your Social Security benefits can significantly impact your financial future. If your full retirement age is 67, which applies to everyone born in 1960 or later, opting to claim benefits at age 62 will lead to a permanent 30% reduction. Specifically, your benefits will be reduced by 6.67% per year for the first three years before your full retirement age, plus an additional 5% per year for any time claimed beyond three years early.
Waiting Can Make a Big Difference
On the other hand, delaying your Social Security claim can have a substantial positive impact. For instance, if you’re entitled to the average retirement benefit of $1,465 at age 62, waiting until you turn 63 could increase your initial benefit to approximately $1,569.
The Importance of Inflation-Protected Income
Social Security is often the only source of inflation-protected retirement income that many people have. This is especially true for younger generations who are less likely to have pensions. While you have the option to claim Social Security at 62, it’s crucial to evaluate whether this decision is the best for your long-term financial health.
Consider the following points before making your decision:
- Assessing your current financial needs and future goals
- Understanding the impact of reduced benefits over time
- Evaluating other sources of retirement income
Taking a step back to thoroughly analyze your situation can help ensure you make the most informed decision regarding your Social Security benefits. If you are about to file for Social Security retirement benefits at 62, learn the average payment amounts to compare it with your monthly check. To do that, download your SSA Statement now for free.