Social Security is an essential program for Americans, especially for those who are nearing retirement. As more and more people are reaching the age of 65, many are wondering when they can start collecting Social Security benefits. However, just because someone is 65 doesn’t mean they’re eligible for the full benefits. In this article, we’ll break down when you can expect to receive full benefits, how to calculate the right time to start taking Social Security, and the pros and cons of waiting to take your benefits.
When Do You Qualify for Full Social Security Benefits?
The Social Security program has set certain rules regarding when a person can receive full benefits, which is based on their age. The full retirement age (FRA) is gradually increasing, and it depends on the year you were born.
Full Retirement Age by Birth Year
- If you were born between 1943 and 1954, your FRA is 66 years.
- If you were born in 1955, your FRA is 66 years and 2 months.
- If you were born in 1956, your FRA is 66 years and 4 months.
- If you were born in 1957, your FRA is 66 years and 6 months.
- If you were born in 1958, your FRA is 66 years and 8 months.
- If you were born in 1959, your FRA is 66 years and 10 months.
- If you were born in 1960 or later, your FRA is 67 years.
To find your specific FRA, you can also use a tool from the Social Security Administration (SSA), which lets you input your birthdate and get the exact year and month you should start claiming full benefits.
Should You Take Social Security Early?
You can start receiving Social Security benefits as early as age 62. However, if you choose to take your benefits at 62, you’ll get a smaller amount than if you wait until you reach full retirement age.
For example, if you are eligible to start Social Security at 62 in 2025, your benefit could be reduced by about 30% compared to the full benefit you would receive if you waited until 67 years old.
Some experts, like Dave Ramsey, suggest that people should take Social Security early and invest the money in things like the stock market. Over time, investing that smaller amount might give you a higher return.
However, if you’re retiring because of health issues, the SSA recommends applying for Social Security Disability benefits, which would give you the same amount as a full retirement benefit.
The Benefits of Waiting to Take Social Security
If you can wait beyond your full retirement age, you’ll see an increase in your benefits. For every year you wait past your FRA (up until age 70), your benefits will go up by 8%. This can make a big difference over time. For example, if you wait until 70 to start taking Social Security, your monthly benefit could be significantly higher than if you started at 67.
Additionally, if you keep working beyond your FRA, your lifetime earnings will increase, which could also raise your Social Security benefits when you do retire.
What Happens If You Start Social Security After Full Retirement Age?
For those who choose to delay their Social Security benefits until after full retirement age, each year you delay, your benefit amount will increase. The increase is 8% per year until you reach age 70.
This extra waiting period can be a good idea if you have the financial resources to wait. But it’s important to make sure you have other income or savings to rely on during the delay.
Most People Start Social Security Early
Even though it’s encouraged to wait until your full retirement age or beyond, many people choose to start their benefits early. A survey by the Employee Benefit Research Institute (EBRI) found that 62 years old is the most common age people start claiming Social Security, even though most plan to wait until 65.
Many people end up retiring earlier than planned because of health problems, job changes, or other reasons. In fact, the survey found that 35% of people retired early due to a hardship such as a health issue or disability.
The Average Social Security Benefit
As of January 2025, the average monthly Social Security benefit is about $1,976. While this amount may seem reasonable, it’s important to note that the benefit amount has increased over time. In 1975, the average Social Security benefit was only $207.
While most Americans depend on Social Security as a key part of their retirement income, it’s important to plan ahead and consider when it makes sense to start taking those benefits, based on your financial situation.
Conclusion
The decision about when to start receiving Social Security benefits can have a big impact on your financial future. Understanding the full retirement age and how your benefits are affected by when you start is crucial. While waiting to take your benefits can lead to higher monthly payments, it may not be the best option for everyone. Be sure to consider your personal situation, including your health, income needs, and future goals, when deciding when to claim Social Security. Planning ahead can help you maximize your benefits and set you up for a more secure retirement.
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