Social Security benefits will soon be higher than in 2023. The best news for all Americans who get SSDI (disability benefits), SSI (Supplemental Security Income), or retirement benefits. Although it is just a 3.2% boost, it is a positive change.
Remember that the Social Security Administration increased all benefits by 8.7% in 2023, so with the 3.2% extra in 2024, your benefits will have increased by 11.9% in just two years. If the average boost is just 2 percent, it sounds like a fantastic deal.
Retirees who file later for Social Security usually get larger payments. For example, if you file at the age of 70, you will receive a reward from the Administration. This reward is about 24% if you delay retirement until you are 70.
SOCIAL SECURITY AMOUNT AT 70
The amount of your Social Security retirement benefits at the age of 70 can be up to $4,873. However, not everyone qualifies for such a large payment in 2024. If the average payment for all retirees will be $1,907 in 2024, a 70-year-old who has just filed may get $2,364.
Remember that filing at the age of 70 can be a wise decision if what you need is more money in retirement. Americans who are 62 years old can file for Social Security. But some ignore the fact that they can get 30 percent less.
Since not all seniors can afford to lose 30% of their benefits, it would be advisable to wait and delay retirement. For example, wait until you reach Full Retirement Age. That is the only possibility to cash 100% of your benefits.
Use your Social Security statement to find out your Full Retirement Age and your possible future payments. In this way, you can see approximate amounts before you file at different ages. Let’s compare the possible amounts at 62 and at Full Retirement Age.
RETIREMENT BENEFITS AMOUNT AT 62
The maximum amount a person can get at 62 is $2,572 in 2023. After the Social Security COLA jump, it will become $2,710 in 2024. Therefore, those who meet the salary, years of work, and age to file will collect the largest payment at 62.
Imagine you filed at 62, the average Social Security payment would be 30% lower. So, from $1,907 it would become $1,335. Hence, many seniors who file early would say no to thousands of dollars in retirement.
It is true that 62 is the best age to file if you are in poor health. Or if you are unemployed and cannot find a job. Others prefer to file early because they will not need much money in retirement. At Full Retirement Age, checks can be higher.
The largest payment at Full Retirement Age will be $3,627 in 2023. After the COLA boost, it could be up to $3,822. Not many workers may qualify for such a large check, but it is possible for some high earners to cash it.