If you’re approaching retirement age, you might wonder about the average Social Security benefit for those at full retirement age, which is 67 for anyone born in 1960 or later.
Let’s dive into the numbers and explore strategies to potentially increase your benefits.
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- The average monthly Social Security benefit for retired workers at age 67 is $1,883.50 as of December 2023
- Men aged 67 receive an average of $2,903.70 monthly, while women receive $1,676.20
- Delaying benefits until age 70 can increase payout by up to 24%
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How to Maximise Your Retirement Income?
Average Social Security Benefits at Age 67
As of December 2023, the average monthly Social Security benefit for retired workers aged 67 was $1,883.50, amounting to $22,602 annually.
However, this figure varies significantly between men and women:
- Men aged 67 received an average of $2,903.70 per month ($34,844.40 per year)
- Women aged 67 received an average of $1,676.20 per month ($20,114.40 per year)
It’s important to note that these averages are lower for those who claim benefits earlier. For instance:
- 62-year-olds received an average of $1,298.26 per month ($15,579.12 per year)
- 65-year-olds received an average of $1,563.06 per month ($18,756.72 per year)
The Importance of Full Retirement Age
The reason for lower benefits at younger ages is the early retirement penalty applied by the Social Security Administration (SSA). This penalty reduces benefits by:
– Five-ninths of 1% for each month before full retirement age, up to 36 months
– Five-twelfths of 1% per month for retiring more than 36 months before full retirement age
Understanding the Average Benefit Figure
While these statistics provide a helpful benchmark, it’s crucial to understand a few key points:
- The average includes all retired workers at age 67, including those who claimed benefits earlier.
- The figures don’t reflect the 3.2% cost-of-living adjustment (COLA) that took effect in January 2024.
- New retirees in 2024 with higher lifetime earnings could potentially increase the overall average.
Strategies to Increase Your Social Security Benefit
If you’re looking to beat the average benefit, consider these strategies:
- Delay Claiming Benefits: For each year you postpone claiming benefits beyond full retirement age (up to age 70), your benefit increases by 8%. This could result in a 24% boost if you wait until age 70.
- Increase Your Earnings: Social Security calculates your benefit based on your 35 highest-earning years. Even if you’ve already started receiving benefits, returning to work and earning more than in previous years could increase your benefits.
The $22,924 Social Security Secret
Many retirees overlook strategies that could significantly boost their retirement income.
Understanding how to maximise your Social Security benefits could increase your annual payout by as much as $22,924.
While the average Social Security benefit for 67-year-olds provides a useful reference point, it’s important to consider your circumstances when planning for retirement.
By understanding the factors that influence your benefit amount and implementing strategies to maximise your payout, you can work towards a more secure financial future in retirement.
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