Social Security plays a crucial role in the financial well-being of retirees across the U.S. According to a 2024 poll by Gallup, 60% of retirees depend heavily on Social Security, with 88% relying on it to some degree for their income.
Age 67 is an important milestone for beneficiaries, as it’s the Full Retirement Age (FRA) for those born after 1960, where individuals can claim their full benefits. But how much can you expect to receive if you retire at this age?
How Much Do Retirees Receive at Age 67?
As of December 2023, the average Social Security benefit for those claiming at age 67 is approximately $1,883.50 per month.
However, this amount varies by gender, with men receiving an average of $2,093.70 and women averaging $1,676.20 per month.
By comparison, the average monthly benefit for individuals who claim Social Security at age 62—the earliest age you can claim benefits—is only $1,298.26, highlighting the financial advantage of waiting to claim.
For retirees aiming for maximum benefit, delaying claiming Social Security beyond age 67 up until age 70 could further increase the monthly payout. At age 70, the average benefit jumps to $1,963 per month due to the delayed retirement credits that accrue for each year past full retirement age.
| Retirement Age | Average Monthly Benefit (2024) |
|---|---|
| Age 62 | $1,298.26 |
| Age 67 | $1,883.50 |
| Age 70 | $1,963.00 |
Factors Affecting Your Social Security Benefit
Several factors determine how much Social Security you receive at age 67:
- Lifetime Earnings: Your benefits are based on the highest 35 years of earnings. Higher earnings during your working years result in a larger monthly check.
- Filing Age: Claiming before FRA reduces your monthly benefit. For example, claiming at age 62 results in a reduction of up to 30%. Conversely, delaying your claim until age 70 boosts your benefit by 8% annually.
- Cost-of-Living Adjustments (COLA): Every year, Social Security adjusts benefits to keep up with inflation. In 2024, a 3.2% COLA increased the average benefits, providing a slight boost to retirees.
- Gender Differences: On average, men receive larger benefits than women due to higher lifetime earnings. Women, however, tend to live longer, which means they may draw benefits for a longer period.
Should You Wait Until Age 67 to Claim?
Claiming Social Security at age 67 is often considered a compromise between claiming early and waiting until age 70. Here are some pros and cons of waiting:
Pros:
- Higher Monthly Benefits: By waiting until FRA, your monthly check will be larger compared to claiming at 62.
- Increased Financial Security: Larger benefits provide more financial stability, especially as retirees face rising healthcare costs and inflation.
- Delayed Retirement Credits: If you wait until after age 67, your benefits increase by 8% for each year you delay until age 70.
Cons:
- Delayed Access to Benefits: If you’re in poor health or need the money earlier, waiting might not be practical.
- Risk of Lower Lifetime Benefits: If you have a shorter life expectancy, claiming earlier may result in higher lifetime benefits, even though the monthly amount is lower.
Maximize Your Benefits: Secrets to Boost Your Social Security Income
Many retirees overlook ways to boost their Social Security income, potentially missing out on thousands of dollars each year. Here are some strategies to consider:
- Continue Working Longer: Increasing your earnings, especially during your peak years, can raise your average income over the 35-year calculation period.
- Delay Claiming Until Age 70: Waiting until age 70 maximizes your monthly checks, which can provide you with greater financial freedom during retirement.
- Spousal Benefits: If you’re married, you may be eligible for spousal benefits—up to 50% of your spouse’s benefit—if it exceeds your own.
- Tax-Efficient Withdrawals: Plan your retirement withdrawals strategically to avoid reducing your Social Security benefit due to taxation. Up to 85% of your Social Security benefits can be taxed, depending on your total income.
Conclusion
At age 67, the average Social Security benefit offers a substantial income boost compared to claiming earlier.
Retirees should carefully weigh the pros and cons of when to file based on their health, financial needs, and future goals.
By understanding the factors that affect your benefits, such as lifetime earnings, the timing of your claim, and potential spousal benefits, you can maximize your Social Security income for a more secure retirement.
FAQs
1. What is the full retirement age for Social Security?
For individuals born in 1960 or later, the full retirement age is 67. Claiming at this age allows you to receive 100% of your earned benefits.
2. What is the average Social Security benefit at age 67?
As of December 2023, the average monthly benefit at age 67 is $1,883.50. Men receive an average of $2,093.70, while women receive $1,676.20.
3. How much do I lose by claiming Social Security at 62?
Claiming at age 62 reduces your monthly benefit by as much as 30% compared to waiting until age 67.
4. What is the maximum Social Security benefit at age 70?
For those who delay claiming until age 70, the maximum benefit can reach $4,555 per month in 2024 due to delayed retirement credits.
5. How does working longer affect my Social Security benefit?
Working longer can increase your benefit by raising your highest 35 years of earnings, potentially leading to a larger monthly check.
References
- Social Security Administration (SSA). 2024 Social Security Data and Benefits
- Gallup Poll. Retirement Income Dependency Statistics
- Nasdaq. Average Social Security Benefits by Age
- The Motley Fool. Strategies for Maximizing Social Security
