Retirees are eligible for social security at the age of 62, but the age at which the benefits begin has a profound impact on the amount of income they receive.
The average social security benefit for retired workers at the age of 70 exceeds the average benefit of 62 years by about $ 811 per month and $ 9,726 a year.
Retired workers born in 1960 or later may increase their compensation 77%, simply seeking social security at the age of 70, not 62 years old.
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The best age to start social security depends on the personal circumstances, but pensioners cannot make a reasonable decision without first understanding how the age factors of the claim in the equation. We can study this topic by looking at the average social security benefit paid to retired workers of different ages.
Read to learn more.
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Social security represents approximately 22% of government spending, so the Social Security Administration (SSA) regularly publishes anonymous benefits data to ensure transparency and improve public understanding.
The following table downloads information from a two -year report. This shows the average benefit paid to retired workers of different ages from June 2025.
Retired age per worker
Average monthly compensation
Average annual benefit
62
$ 1377
$ 16,524
63
$ 1392
$ 16,705
64
$ 1447
17 369 dollars
65
$ 1613
19 355 dollars
66
$ 1809
$ 21,705
67
$ 1,963
23 552 dollars
68
2 004 dollars
24 045 dollars
69
2 052 dollars
$ 24,629
70
2188 dollars
$ 26 250
Data Source: Social Security Administration. The average amounts of benefits are rounded to the closest dollar.
The graphics are clear that social security payments tend to be more large for older retirees. The discrepancy between the average benefit at 62 (the most possible age of the claim) and 70 (the oldest reasonable age of the claim) is about $ 811 per month or $ 9,726 a year. And the average retirement benefit at 66 is somewhere in the middle: it is about $ 379 less than the average monthly benefit of $ 70, but $ 432 more than the average monthly benefit of 62.
The SSA examines several variables when calculating benefits, but differences in the age of the claim are the main reason why payments are more large for older retirees. For all other equal ones, the retirees who claim compensation at 62 will receive the lowest possible payment, while the pensioners who start social security at the age of 70 will receive the most possible payment.
Here’s how the Social Security Administration defines retired job benefits: First, the profits of your 35 highest-paid years are indexed to account for changes in the average salary over time. Second, the indexed profits are converted to an average monthly average called the average indexed monthly amount (Aime).
Third, Aime is executed through a formula for finding the basic insurance amount (PIA), the compensation that the retired worker will receive if the social security of full retirement age (FRA) begins. Fourth, PIA is adjusted for early or delayed retirement as follows:
Workers who claim social security before FRA receive less payment, which means that they receive less than 100% of their PIA. The precision reduction depends on how many months early social security begins, but no one can request pension benefits earlier from 62.
Workers who delay social security beyond FRA receive a more payment, which means they receive more than 100% of their PIA. The precision increase depends on how many months the late social security begins, but no advantage is required after 70.
The following table shows the relationship between the year of birth and FRA. It shows the retirement benefit (as a percentage of PIA) that the worker will receive if he starts social security at 62 and 70. In other words, he describes the smallest and largest payment for each FRA group.
Birth year
Full retirement age
Compensation of 62 years
Benefit of 70 years of age
1943-1954
66
75%
132%
1955
66 and 2 months
74.2%
130.6%
1956
66 and 4 months
73.3%
129.3%
1957
66 and 6 months
72.5%
128%
1958
66 and 8 months
71.7%
126.6%
1959
66 and 10 months
70.8%
125.3%
1960 and later
67
70%
124%
Data Source: Social Security Administration.
The important thing is that the average benefit for social security tends to increase over time due to inflation and changes in average wages. For example, the average monthly retirement benefit at the age of 70 is currently $ 2,88, but in June 2020 it is $ 1612. This means that the average 70-year-old pensioner receives an additional $ 576 a month today.
I mention that since some readers may not start social security for several years, and the average payments are likely to be higher at this point. The percentages shown in the graphic graph will not change. This means that a retired worker, born in 1960, can increase his benefit 77%by simply seeking social security at the age of 70, not 62 years old.
How did I invent this figure? I divided 124 to 70. In other words, I divided the largest possible payment (expressed as a percentage of PIA) from the less possible payment (expressed as a percentage of PIA). The answer is about 77.
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Here is the average benefit for social security aged 62, 66 and 70 by June 2025. It was originally published by Motley Fool
