Choosing when to start receiving Social Security benefits can be difficult, partly because there is not one "best age" for everyone. Yet it's a decision with major consequences, given it will affect how much you receive each month for the rest of your life.
Factors to consider include whether or not you plan to work (even part-time) once you reach retirement age, sources of income you'll have access to when you retire, and whether or not you have dependents.
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The smartest thing you can do is gather information well before you retire, do some basic math, and then make an informed decision based on your unique situation.
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Your "full retirement age" — as the Social Security Administration calls it — depends on your birth year. The full retirement age was 65 for many years, but the age has gradually risen.
Currently, people who were born in 1960 or later qualify for full retirement benefits when they turn 67. Still, some people choose to receive Social Security payments starting at age 62, during the first year of eligibility. Starting earlier, however, means you'll bring home less money each month.
It might be better to delay receiving Social Security payments
There's a simple reason to do some basic math when it comes to deciding when to receive your Social Security benefits. Let's say you will turn 62 in 2025. If you choose to start receiving benefits at 62, your monthly benefit will be 30% lower than it would be if you waited until age 67.
So, if your maximum benefit will be $2,000 a month when you reach age 67, you'll get just $1,400 if you start receiving Social Security at age 62. If you choose to wait until age 70, your monthly benefit goes up to $2,480 a month — a substantial difference.
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For each month past the age of 62 that you delay receiving your benefit, the amount you receive goes up slightly, and the increases are permanent.
For help with the math, sign into your personal "My Social Security" account — it's a tool that lets you estimate your future benefits.
Even if you delay Social Security, don't forget to sign up for Medicare
No matter what age you decide to access your Social Security benefits, another important consideration is a fundamental part of retirement planning: Medicare.
Medicare is the health insurance program for Americans aged 65 or older. There are three enrollment periods to know about. The first one is when you turn 65, the "Initial Enrollment Period."
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The second is for people older than 65 who are still covered by an employer health plan; this is called the "Special Enrollment Period."
Finally, there is a "General Enrollment Period" for people who miss the other two enrollment options. It is essential not to allow yourself to fall into this third bucket because you will face a life-long penalty of 10% of the cost of your premium. In 2024, the monthly penalty is around $37 a month (for the rest of your life).
Even if you plan to hold out until age 67 to start receiving your Social Security, don't forget to sign up for Medicare three months before you turn 65.
The average American's Social Security benefit is lower than you might think
According to the Social Security Administration, the average American receives around $1,783 monthly from Social Security.
Social Security payments are based on your lifetime earnings. In other words, the more income you earn, the higher your monthly Social Security payments will be. However, there is a limit.
In 2024, the maximum Social Security benefit for people who retire at age 67 is $3,822 per month; people waiting to receive benefits until age 70 receive $4,873 monthly.
The time to start planning is now because retirement just might last longer than you think.
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