The decision regarding when to start receiving Social Security retirement benefits is a pivotal one for many Americans. As individuals approach retirement age, understanding the implications of their choices can lead to significantly different financial outcomes. According to the latest data from the Social Security Administration (SSA), the ages at which people start claiming their benefits vary widely, influencing their monthly payouts.
Popular Ages for Claiming Benefits
Individuals can begin claiming Social Security retirement benefits as early as age 62. In 2024, approximately 23.3% of women and 22% of men opted to start at this minimum age. However, choosing to claim benefits at age 62 results in a 30% reduction in monthly payments for those whose full retirement age (FRA) is 67. This reduction highlights the importance of timing in maximizing benefits.
The least popular ages for initiating benefits are 63 and 64. Only 6.2% of men and 6.4% of women decided to claim at age 63, while 6.5% of men and 7% of women chose age 64. Those who begin claiming at these ages face reductions of 25% and 20%, respectively, if their FRA is 67.
Age 65 sees a slight increase in popularity, with 15.3% of both genders beginning to collect benefits. This age aligns with the eligibility for Medicare, which may influence the decision. Claiming at this age results in a 13.3% reduction in benefits.
Climbing Popularity of Full Retirement Age
As individuals reach their FRA, more people tend to claim their benefits. In 2024, 27% of men and 25.3% of women began collecting Social Security at age 66, the FRA for those born between 1943 and 1954. However, those who were born in 1960 or later will have a FRA of 67 and will receive unreduced payments only if they wait until that age. In 2024, 14.5% of men and 13% of women claimed their benefits at age 67.
Delaying benefits can also be beneficial. In 2024, 12.5% of men and 12.3% of women chose to claim their Social Security at age 68, which yields an 8% increase in benefits. Those who opted to wait until age 69 saw their benefits rise by 16%, with 14.5% of men and 13.2% of women making this choice.
The maximum advantage occurs when individuals wait until age 70, as this age provides the largest possible payout—an increase of 24% over the FRA of 67. In 2024, only 8.4% of women and 9.1% of men held out until this age.
As individuals like the reader who inquired about the best age to claim Social Security benefits ponder their options, utilizing tools such as the Retirement Age Calculator available on the SSA website can provide personalized insights. This resource helps users determine their FRA and the impact of claiming at different ages.
For those seeking more information, questions can be directed to Savvy Senior via email at [email protected] or by mail at P.O. Box 5443, Norman, OK 73070. Understanding the timing of Social Security benefits can make a significant difference in financial security during retirement.
