The typical age at which Americans claim Social Security benefits
In 2023, the average age for Americans to claim Social Security benefits was about 65.2 years, according to recent data. This average has increased from the late 1990s, when the average was around 63.8 years for men and 64.0 years for women.
For those born between 1955 and 1959, the full retirement age (FRA) gradually increases from 66 to nearly 67. Claiming at 62 results in reduced benefits, with the reduction ranging from about 25% for 1955 births to nearly 29% for 1959 births compared to the FRA benefit.
This trend of delayed claiming to maximize benefits is reflected in the data, with Americans in the 1955-1959 cohort claiming slightly before or around their FRA. The weighted average claiming age of ~65.2 years in 2023 is below 67 but above the early claiming age 62, indicating many people claim before full benefit age but later than the earliest possible age.
If a retired worker can afford to wait, filing for benefits at age 70 can result in an 8% increase in monthly benefit for every year past full retirement. However, it's important to note that delaying filing for Social Security benefits until as late as possible can result in a larger monthly check, but may not maximize lifetime earnings due to a shortened lifespan.
In 2023, the average monthly benefit for Americans who newly claimed Social Security was $1,292.60 at age 62, $1,498.23 at age 63, $1,657.09 at age 64, $1,916.33 at age 65, $2,106.15 at age 66, $2,487.84 at age 67, $2,750.48 at age 68, $2,923.64 at age 69, $3,162.09 for those between 70 and 74, and $1,282.00 at age 75.
The FRA for people born in 1960 or later is 67 years, and the maximum age for which a retired worker can increase their payout by waiting to claim benefits is age 70. Working with a financial advisor can help make smart choices regarding the best age to claim Social Security with minimal trade-offs.
The bottom line is that while the average age for retired workers to take Social Security is 65, it may not be the best option for everyone, and individual financial needs and circumstances should be considered. It's crucial to carefully weigh the pros and cons and consult with a financial advisor to make an informed decision.
[1] Source: Social Security Administration [2] Source: AARP [3] Source: Investopedia [4] Source: Forbes
- Delaying the claim of Social Security benefits beyond the full retirement age can lead to an increased personal-finance situation, with a 8% boost in monthly benefits for each year past the FRA, as stated by Investopedia.
- Engaging the services of a financial advisor can aid in making informed decisions about the ideal age to start receiving Social Security benefits, as this can have significant implications for one's personal-finance management, as suggested by Forbes.
