Social Security remains a crucial component of retirement income for many Americans, with the age at which benefits are claimed playing a pivotal role in determining monthly payment amounts. A recent analysis of data provided by the Social Security Administration (SSA) reveals distinct patterns in the average monthly benefits received at different retirement ages, highlighting the financial implications of claiming early versus delaying benefits.
According to the SSA's biannual report updated through June 2025, the average monthly benefit for retired workers rises notably with each passing year from age 62 up to age 70. This incremental increase reflects adjustments based on the retiree's claim age, which directly impacts the final benefit amount under the Social Security formula.
| Age at Claiming | Average Monthly Social Security Benefit (2025) |
|---|---|
| 62 | $1,377 |
| 63 | $1,392 |
| 64 | $1,447 |
| 65 | $1,612 |
| 66 | $1,809 |
| 67 | $1,963 |
| 68 | $2,004 |
| 69 | $2,052 |
| 70 | $2,188 |
The data illustrates that the average retired worker at age 70 receives $2,188 monthly, whereas the average benefit for someone claiming at age 62 is $1,377 monthly — a difference of $811 each month. For retirees claiming at age 65, the average sits between these two extremes at $1,612, indicating the financial benefit of waiting to claim.
This variation results primarily from Social Security’s calculation process, which considers two key elements: the worker’s lifetime earnings and the age at which they choose to start receiving benefits. The calculation unfolds in two main steps:
- Establishing the Primary Insurance Amount (PIA): The SSA computes the PIA using the top 35 years of inflation-adjusted earnings, applying a specific formula to determine the base monthly benefit payable if a retiree claims at their full retirement age (FRA).
- Adjusting for Claiming Age: Benefits are then adjusted based on whether a retiree claims before, at, or after the FRA. Early claimants (starting at age 62) receive a reduced benefit—their payout is a fraction of their PIA. Conversely, those who delay claims beyond FRA earn increased benefits, up to age 70 when delayed retirement credits cease to accumulate.
Notably, the FRA varies with birth year. Individuals born in 1960 or later have an FRA of 67, while earlier cohorts have slightly lower FRAs, ranging between 66 and almost 67 years depending on birth year.
| Birth Year Cohort | Full Retirement Age | Benefit as % of PIA at Age 62 | Benefit as % of PIA at Age 70 |
|---|---|---|---|
| 1943-1954 | 66 | 75% | 132% |
| 1955 | 66 years & 2 months | 74.2% | 130.6% |
| 1956 | 66 years & 4 months | 73.3% | 129.3% |
| 1957 | 66 years & 6 months | 72.5% | 128% |
| 1958 | 66 years & 8 months | 71.7% | 126.6% |
| 1959 | 66 years & 10 months | 70.8% | 125.3% |
| 1960 and later | 67 | 70% | 124% |
This table demonstrates that the relative benefit for claiming Social Security at age 62 versus age 70 declines with more recent birth cohorts. For example, workers born in 1960 or later receive 70% of their PIA when claiming at age 62 but can boost their payout to 124% of their PIA by waiting until age 70, a 77% increase in benefits.
To illustrate, consider a hypothetical retiree born in 1960 or later with a PIA of $2,116 in 2024. This individual would receive approximately $1,481 per month when claiming at age 62, calculated as 70% of $2,116. However, waiting to claim until age 70 would increase the benefit to about $2,624 monthly, or 124% of the PIA, reflecting a significantly larger income stream.
The proliferation of early claimants is notable, with over 20% of newly entitled retirees opting to claim benefits at the earliest eligible age of 62, despite receiving the lowest possible monthly payment. Conversely, fewer than 10% of retirees delay claiming until age 70, foregoing immediate income to enhance their future benefit substantially.
This trend emphasizes the financial trade-offs faced by retirees: early claiming provides income sooner but at a discounted rate, whereas delayed claiming results in higher monthly benefits but requires postponing access to funds and potentially facing a shorter time horizon to recoup the delay through increased payments.
Understanding these dynamics allows workers approaching retirement to better strategize when to initiate Social Security benefits, balancing immediate financial needs against maximizing long-term payouts.