The age at which Americans can claim their full retirement benefits has gradually increased. Currently, individuals born in 1960 or later must wait until they reach the age of 67 years and one month to be eligible for their full retirement benefits.
Workers can start receiving their Social Security retirement benefits at age 62, but they are reduced if they receive them before the full retirement age. On the other hand, if the worker decides to wait, they will collect more money at the expense of working longer.
If you were born in 1954 or before, your full retirement age is 66. There are no penalties for these folks, but if you are born after this date, you must wait longer. If you reach full retirement age at 66, the average monthly check you will receive is $3,627.
Average Social Security retirement benefits in 2023
Average payments for all retirees enrolled in the Social Security program increased to approximately $1,909 in January 2024, according to the Social Security Administration (SSA).
— Austin Ahlman (@austinahlman) March 29, 2023raising the the US retirement age seems neutral until you remember the poor aren’t living any longer
rich seniors losing a couple years from their decades-long retirement is no biggie, but for poor seniors, who may only collect for a few years as it is, it’s a HUGE benefits cut https://t.co/isI78tcvTJ pic.twitter.com/3cD3TEjp5z
However, if you retire in 2023 at age 62, your maximum benefit would be much lower, $2,572. Waiting until age 70 to claim increases the maximum benefit to more than $4,000. However, you will only receive the maximum benefit if your working income exceeds a specific limit for the majority of years you were incorporated in the workforce.
Calculating retirement benefits
The amount that you can receive when you retire is determined by a few main factors. The SSA looks at your 35 highest-income years and calculates the average. Then, that number is plugged into a formula, considering the age at which you retire, which will determine your primary insurance amount (PIA). You can use the Social Security Administration’s calculator to see your benefits.
