The Average Social Security Check Is $1,424 at 62 and $2,016 at 67. Here’s What That Gap Costs Over a Lifetime
Your Social Security filing age quietly shapes how much lifetime income you actually collect, and the gap between your earliest option and full retirement age may surprise you in ways a monthly comparison alone never reveals.
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Social Security is one of the most important retirement income streams for older Americans today. And many people end up relying on those benefits to cover the majority of their retirement expenses.
The monthly Social Security benefit you’re entitled to in retirement is based on your personal wage history — specifically, your 35 highest-paid years of income. But your filing age also plays a role in how much money you receive in benefits each month. And you should know that there’s a huge difference between the amount you might receive when you first become eligible for Social Security versus waiting.
Claiming Social Security: it’s important to know the rules
Once you turn 62, you’re allowed to sign up for Social Security at any point. But you won’t get your complete monthly benefit until you reach full retirement age (FRA).
FRA is 67 if you were born in 1960 or later. If you file for Social Security at 62, your benefits will be reduced by about 30% compared to waiting until FRA.
On the flipside, delaying your Social Security claim beyond FRA works to your advantage. Your benefits get an 8% boost for each year you wait, up until 70. With an FRA of 67, you have an opportunity to increase your monthly Social Security checks by 24%.
The lifetime difference could be huge
If you’re torn between claiming Social Security at the earliest possible age of 62 versus waiting until 67, you may be thinking about things from a monthly income perspective. But it’s important to recognize how much income you might miss out on in your lifetime if you file for Social Security at 62.
The average monthly benefit at 62 today is about $1,424. At 67, it’s $2,016. That’s a difference of $592 per month.
Now to be clear, these numbers represent what Social Security is paying the average recipient at age 62 versus 67 today. Those getting benefits at 62 clearly filed at 62, but it’s not a given that everyone receiving benefits at 67 filed at 67.
Still, losing out on $592 per month in Social Security could sting if you end up living a long life.
Let’s say you start Social Security at 62 and live until 92. If you collect $1,424 per month over 30 years, that’s a total of $512,640 in Social Security.
Now, let’s say you start Social Security at 67 and live until 92. If you collect $2,016 per month over 25 years, you’ll receive a total of $604,800 in Social Security, despite missing out on five years of benefits. That’s a difference of $92,160.
Look at the big picture
Although claiming Social Security at 62 could reduce your benefits on a monthly and lifetime basis, that’s not guaranteed to happen. If you don’t end up living a long life, an early claim could actually work out for you financially.
So what you really want to ask yourself is whether your health is strong and your family history points to a decent lifespan. If so, you may want to hold off on Social Security until you reach FRA. But if you’re not so convinced, an early claim could work out better for you financially.
Either way, the key is to understand the difference in benefits you’ll be looking at by claiming Social Security at 62 versus 67, and to realize that an early claim could result in a lot less income in total under certain circumstances.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
