Discover Social Security Benefit at Age 62
Social Security is a critical program that provides financial support to retired or disabled Americans officiated by SSA. One crucial decision that retirees face is when to start claiming their benefits. While benefits can be claimed as early as age 62, the amount you receive will be less than if you wait until your full retirement age.
The Social Security Administration (SSA) sets the full retirement age for people born between 1943 and 1954 at 66. If you claim your benefits at age 62, your monthly payment will be reduced by 25%. For example, if your retirement benefit is $1000, you would only receive $750 per month. Similarly, a $500 spousal benefit would be reduced to $350.
For those born in 1960 or later, the reduction is even greater. If you claim your benefits at age 62, your retirement benefit will be reduced by 30%, and spousal benefits will be reduced by 35%. This means that a $1000 retirement benefit would be reduced to $700 per month.
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According to a published article in Go Banking Rates, the SSA’s 2021 Annual Statistical Supplement reveals that the average monthly benefit for a retired worker claiming benefits at age 62 and earning the average wage was $1,480 per month for the worker alone. However, the benefit amount for workers with spouses claiming benefits was higher, at $2,170 at age 62.
Delaying your benefits until after your full retirement age can lead to an increase in your monthly benefit. If you delay claiming benefits until age 70, you can receive delayed retirement credits, which will increase your monthly payment. Therefore, if you can afford to wait, delaying your claim might be a wise choice.
Claiming Social Security benefits at age 62 can be an attractive option, but it comes with a significant reduction in the monthly payment amount. If you want to maximize your monthly benefit amount, delaying your claim until after your full retirement age is a better option. Remember, that your decision to claim Social Security benefits is a personal decision, and you should consider your financial situation and other factors before making a choice.
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