Social Security allows American workers to file for retirement benefit payments at the age of 62. However, what many recipients ignore is the fact that their monthly payment is reduced by about 30% for early filing. Instead, you could wait to file when you reach the Full Retirement Age because it is when you can collect 100% of your benefits.
Other retirees may ignore that their Social Security benefits will only continue to grow until they turn 70. Hence, once you turn 70, you must stop working and file for retirement because your benefits will no longer take advantage of the delayed retirement credits. But how much extra will you get if you continue working until you turn 70 years old?
Why file at the age of 70 for Social Security
Apart from filing at 70, because your retirement benefits will not continue increasing, thanks to delayed retirement credits, it will be the moment when you receive 24% extra per month.
That implies you get 8% extra per year you work after Full Retirement Age. The normal or Full Retirement Age is not the same for all American workers. It depends on the year you were born. So 70 is the perfect age to get as much as possible from the SSA.
Although it used to be 65, it will soon be 67 for those who were born in 1960 or later. It has been gradually increasing until it reaches the age of 67. So if you are in your sixties, you must be wondering when it is best to file.
Many workers think about the free time they will have when they retire. On the contrary, few reflect on the way inflation and soaring prices can shrink their monthly budget.
Social Security payment amount sample by age
Making the right decision when it comes to filing for Social Security payments is essential. Being informed will help you file at the right age, and there are some SSA tools that can help you do so.
Two of them can be the retirement benefits calculator or the quick calculator. Anyway, it is even better if you have a my Social Security account and you download a Statement.
This Statement will show you if you qualify for Social Security retirement or SSDI benefits. So, it basically checks how much you paid when you worked and how much you could get each month, approximately.
This will give you a much clearer picture of what you could get from the Administration and if you will be able to afford retirement at 62 or at 70. MAke up your mind once you are informed, but first check this estimate by age:
- if you receive $1,465 at 62 from the SSA, you could have gotten $2,634 at the age of 70
- At 63: $1,569
- At 64: $1,681
- At 65: $1,827
- At 66: $1,973
- At 67: $2,119
- At 68: $2,291
- At 69: $2,463
- At 70: $2,634
