If you’ve been receiving Social Security retirement benefits for a while, you may be interested in how your check compares to others.
No problem, you don’t have to scour your local mailbox to find out. If you haven’t started receiving benefits yet, you may want to know what to expect and what will affect this amount.
Do not miss it
Fortunately, the Social Security Administration (SSA) publishes extensive statistics on all beneficiaries and benefit amounts in the United States. However, when comparing your benefits with those of others, monthly payment amount It depends primarily on four factors: your years of service, your income for the year, your full retirement age (FRA), and the age at which you choose to begin receiving benefits.
Average benefits for retired workers aged 62, 66 and 71
SSA provides assistance to many groups of people, not just retired workers. The deceased worker’s spouse, disabled person, and minor children may also receive benefits.
This article focuses on those who received severance pay. Approximately 74% Number of SSA beneficiaries as of December 2022.
At that time, the average monthly benefits for retired worker beneficiaries were as follows:
-
$1,274.87 for age 62
-
$1,719.85 for age 66
-
$1,946.34 for age 71
The amount of your benefit is based in part on your age at the time of application.
FRA is the age at which you become eligible to receive your full Social Security retirement benefits and is determined based on your date of birth. For example, if he was born between 1943 and 1954, the FRA would make him 66 years old. From 1955 to 1960, your FRA increases gradually every two months to a maximum of age 67. You can use SSA to determine her FRA. Retirement age calculator.
You can choose to start receiving retirement benefits before or after FRA, which will affect the size of your check. If you apply early, your monthly payments will be reduced and the reduction will be permanent.For example, if Start receiving benefits at age 62 In 2023, your benefits will be about 30% lower than if you waited until you reached your FRA at age 67. If he waits until age 70 to claim benefits, his monthly income could be even higher.
read more: Thanks to Jeff Bezos, it’s now possible to Turn prime real estate into cash using $100 — Save yourself the headaches of being a landlord.Here’s how to do it
Checks are based on previous income
If you are age 62 or older and have paid Social Security taxes for at least 10 years, you may be eligible for retirement benefits. Benefits are calculated based on the average income earned during her 35 years of highest income, indexed to wage inflation.
If you’re planning on retiring early but haven’t worked for 35 years, you may want to reconsider. When the SSA calculates your payment, any year you don’t work counts as zero income. This can significantly reduce the benefits you are entitled to.
That’s because Social Security is designed to replace a portion of your average income over 35 years. Low-income earners who begin benefits at full retirement age receive about 75% of their average pre-retirement income, and middle-income earners receive about 40%. According to S.S.A.. High-income earners receive about 27%. however, maximum amount You can receive it.
But there may be good reasons to start collecting earlier
If you wait, your check will get bigger, but there are several reasons why. Start collecting rewards Before F.R.A. For example, if you retire before age 62, you may need money for daily necessities or to pay off high-interest debt. If you or your spouse have health problems or don’t expect to live until age 70, your total benefits may be larger if you start collecting sooner.
In fact, many people decide to start collecting retirement benefits before reaching FRA. The average age at which retirees received benefits in 2022 was 65.2 years for men and 65.1 years for women. According to S.S.A.. Among male benefit recipients in the same year, nearly half (49.3%) started receiving benefits before FRA. Among female benefit recipients, the proportion of early claimants was even higher at 51.8%.
If you haven’t yet claimed retirement benefits, ask your financial advisor whether it makes sense to file before or after FRA to maximize your benefits. Please consult.
What to read next
This article is for information only and should not be construed as advice. PROVIDED WITHOUT WARRANTY OF ANY KIND.
