Did you know that the maximum Social Security benefit varies dramatically based on when you claim benefits? You have a choice to start your retirement checks as young as 62, or you could wait until 70 before you get your first payment.
Your decision about when to claim could affect the size of your payment by hundreds of dollars per month. Let’s take a look at what age you’d need to claim benefits to get the biggest check, along with some details about why this age is best for most seniors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
You’ll get the biggest Social Security check if you claim retirement benefits at this age
So, which Social Security filing age will give you the biggest monthly benefits? The answer is clear: It’s 70.
According to the Social Security Administration:
The maximum benefit if you retire at 62 in 2026 is $2,969.
The maximum benefit if you retire at full retirement age (FRA) in 2026 is $4,152.
If you retire at age 70 in 2026, the maximum benefit is $5,181.
You probably won’t get the maximum Social Security benefit, as you’d need to earn a very high income during your entire career, in addition to waiting until 70 to claim benefits.
But no matter how much you have earned, or how big your checks ultimately end up being, you will get a bigger check for the rest of your life if you wait until 70 to begin collecting Social Security.
Why most retirees should wait until 70 to claim benefits
There’s a very simple reason you’ll get the biggest monthly benefit available to you if you wait to claim until 70.
The benefits formula gives you a standard benefit equal to a percentage of average wages over your 35 highest-earning years (adjusted for inflation). But you get that standard benefit only if you claim Social Security at exactly your full retirement age.
If you can delay your benefits claim until age 70, you will avoid early filing penalties. Those reduce your monthly payment by as much as 30% if you claim at 62 when your FRA is 67. And delaying even beyond your FRA gives you the chance to increase your standard benefit. Every month you wait beyond FRA until 70 grows your check by 2/3 of 1%. Someone who waits until 70 with an FRA of 67 will ultimately end up with 24% more money each month.
Of course, you do have to give up years of collecting Social Security if you wait until 70. It’s worth taking that into account. But research has shown that over 90% of workers ages 45 to 62 will end up with more lifetime benefits if they delay until 70.
So this delay gives you more money each month, and most likely more money for life. If you can make your retirement plans based on the idea that you’ll wait as long as possible to start your Social Security checks, you’re much more likely to end up better off in the end.
The $23,760 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.
Many Americans leave money on the table in retirement. Learn more about these retirement strategies and more, available when you join Stock Advisor.
View the “Social Security secrets” »
The Motley Fool has a disclosure policy.
This Is the Social Security Filing Age With the Biggest Monthly Checks was originally published by The Motley Fool
