What age you claim Social Security determines your monthly payment for life

The age you claim Social Security directly changes how much money you receive each month, and that difference stays with you permanently. Someone who claims at 62 receives a smaller monthly payment than someone who waits until 67 or 70, even if they were born in the same year. The Social Security Administration publishes average payment amounts by age and benefit type, updated each year to reflect cost-of-living adjustments and changes in the population claiming benefits.

Your birth year determines your full retirement age — the age at which you can claim your full benefit amount without any reduction. For people born between 1943 and 1954, full retirement age is 66. For those born between 1955 and 1960, it rises gradually to 67. Anyone born in 1960 or later has a full retirement age of 67. Claiming before that age reduces your monthly payment; claiming after that age increases it.

Key Takeaways

  • Claiming Social Security at 62 results in a permanent reduction of roughly 30 percent compared to claiming at your full retirement age, depending on your birth year.
  • Waiting until age 70 increases your monthly payment by roughly 24 to 32 percent above your full retirement age amount, depending on your birth year.
  • The Social Security Administration publishes average benefit amounts by age group and benefit type each year, though your individual payment depends on your earnings record.
  • Cost-of-living adjustments are applied to all benefits each year, so average amounts change annually even if the rules for claiming do not.

How claiming age reduces or increases your payment

If you claim before your full retirement age, Social Security reduces your monthly benefit by a percentage that depends on how many months early you claim. The reduction is permanent — it applies to every payment you receive for the rest of your life. Someone born in 1960 or later with a full retirement age of 67 who claims at 62 receives approximately 70 percent of their full benefit amount each month.

If you delay claiming past your full retirement age, your benefit increases by a percentage for each month you wait, up until age 70. After age 70, there is no additional increase for waiting longer. For someone with a full retirement age of 67, waiting until 70 adds roughly 24 percent to their monthly payment. The exact percentage depends on your birth year because the reduction and increase rates are set by law based on when you were born.

Average payment amounts by age and benefit type

The Social Security Administration tracks average monthly benefits for retired workers, spouses, children, and survivors. These averages change each year because of cost-of-living adjustments and because the population claiming benefits shifts over time. The averages do not represent what any individual will receive — they are calculated from actual payments going out to millions of people with different earnings histories.

Average retired worker benefits vary by age because people who claim at different ages have different characteristics. People who claim at 62 tend to have lower lifetime earnings on average than people who wait until 67 or 70. Survivor and spouse benefits also have their own averages, and these change independently from retired worker benefits. To find the most recent average amounts, you can visit the Social Security Administration's website, which updates these figures annually.

Why your individual payment differs from the average

Your actual Social Security payment is based on your own earnings record, not on the average. The Social Security Administration calculates your benefit by taking your highest 35 years of earnings, adjusting them for inflation, and then explore a formula that replaces a higher percentage of lower earnings than higher earnings. Two people born in the same year who both claim at the same age can receive very different monthly payments because they had different earnings histories.

Your payment also depends on whether you worked long enough to be covered by Social Security. You need 40 credits to receive retired worker benefits; most people earn four credits per year, so 10 years of work is the minimum. If you worked fewer than 35 years, zeros are counted in your calculation, which lowers your benefit. If you worked more than 35 years, only your highest 35 years count.

Cost-of-living adjustments and annual changes

Every January, Social Security applies a cost-of-living adjustment (COLA) to all benefits. This adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) measured from the third quarter of one year to the third quarter of the next year. If inflation was higher, the COLA is higher; if inflation was lower or prices fell, the COLA is lower or zero. In years with no inflation, no adjustment is made.

Because of these annual adjustments, average benefit amounts published one year will be different from averages published the next year, even if the rules for claiming have not changed. A person who claimed at 62 in 2023 receives a different monthly amount in 2024 than they did in 2023, and the average for all people claiming at 62 also shifts. This is why the Social Security Administration updates its published averages each year.

How to find your own benefit estimate

You can create a my Social Security account on the Social Security Administration's website to see your own earnings record and get a personalized benefit estimate. The estimate shows what you could receive if you claim at 62, at your full retirement age, and at 70, based on your actual earnings history. This estimate is more useful for your planning than the published averages because it reflects your specific work record.

You can create your account at ssa.gov using your Social Security number, email address, and a password. The site will ask you to verify your identity by answering questions based on your credit history or by uploading documents. Once your account is set up, you can view your earnings record, check for any errors, and see your benefit estimates updated each year.

Frequently Asked Questions

Does the average benefit amount tell me what I will receive?

No. The average is calculated from millions of people with different earnings histories. Your payment depends on your own earnings record, how many years you worked, and the age you claim. You can see your personalized estimate through your my Social Security account.

If I claim at 62, will my payment ever increase to match someone who waited until 67?

No. The reduction for claiming early is permanent. Your payment will increase each year with cost-of-living adjustments, but it will always be roughly 30 percent lower than if you had waited until your full retirement age, assuming the same COLA applies to both.

What happens to my benefit if I keep working after I claim Social Security?

If you claim before your full retirement age and earn above a certain amount from work, Social Security temporarily reduces your benefit. In 2024, the limit is $23,400 per year; for every $2 you earn above that, your benefit is reduced by $1. Once you reach your full retirement age, there is no earnings limit and no reduction.

Are the published averages the same for men and women?

The Social Security Administration publishes one average for each age and benefit type, not separate averages by gender. However, individual payments vary widely regardless of gender because they depend on individual earnings records.

When does the cost-of-living adjustment take effect?

The adjustment takes effect in January each year. Your January payment will reflect the new COLA amount. The Social Security Administration announces the COLA percentage in October of the previous year.