The retirement age when Americans can claim their full benefits has been steadily increasing. Currently, those who were born in 1960 and after will need to wait until they are 67 years old, and one month, to reach the full retirement age.
A worker can start receiving their Social Security retirement benefits at age 62, but if they start receiving them before what is deemed the full retirement age, they are reduced. On the other hand, if the worker decides to wait, they will collect more money at the expense of having to work longer.
If you were born in 1954 and before your full retirement age is 66. This means there are no penalties for these folks, but if you are born after this date you will need to wait longer.
If you hit full retirement age at 66 then the average monthly check you will receive is $3,627 per month.
Average Social Security retirement benefits in 2023
Average payments for all retirees enrolled in the Social Security program increased to approximately $1,827, according to the Social Security Administration (SSA).
However, if you retire in 2023 at age 62, your maximum benefit would be much lower, $2,572.
Waiting until age 70 to claim increases the maximum benefit to more than $4,000.
Calculating retirement benefits
The amount that you can receive when you retire is determined by a few main factors. The SSA looks at your 35 highest-income years and calculates the average. Then that number is plugged into a formula, taking into consideration at what age you retire, that will determine your primary insurance amount (PIA). You can use the Social Security Administration’s calculator to see what your benefits could be.
