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You know that waiting longer to collect Social Security benefits means higher monthly payments. But how much more?
Consider the following numbers before deciding when to take your profit. Also find out how your Social Security check could be higher this year – before it’s too late.
Average Profit Check at 62 vs 70
every six months social Security Administration (SSA) releases data on average benefits paid by age.
By December 2025, the average 62-year-old beneficiary collects $1,424 per month. The average 70-year-old collects $2,275: a 60% improvement over 62-year-olds.
Keep in mind that the average 70-year-old benefit includes recipients who started collecting earlier. The actual difference is even greater for those who wait.
How much more do you get by waiting?
Americans born in 1960 or later reach “full retirement age” for benefits at age 67. If they start taking benefits at age 62, their benefits are cut by 30%. And if they die before their spouse, the surviving spouse’s benefit is reduced by 35%.
By contrast, Americans who wait until age 70 get 24% more than their full retirement benefits.
To illustrate with simple numbers, imagine someone who will collect $2,000 when they take benefits at age 67. If they start at age 62, they’ll collect $1,400 per month, or $2,480 if they wait until 70. This is a 77% difference in monthly profits.
Deciding when to take profits
If you want or need to retire early and are unable to do so without Social Security benefits, this eliminates most options. But what about workers who are trying to make strategic decisions about benefits?
“The breakeven point is usually in your early 80s – the longer you live past that point, the more profit you’ll make,” explains Cody Schuiteboer, CEO of . best interest financial. “The math is in your favor if you wait, but less than 10% of retirees wait until age 70 to reap maximum benefits.”
If you have a short life expectancy or have health problems, it may not make sense to wait.
Financial planner Chad Gammon Custom Fit Financial Points to another logical fallacy.
Gammon said, “Be careful of assuming that you can invest income starting at age 62 and beat the high gains. I have seen clients make such an effort only to regret claiming at their young age.” Remember that as a retiree, you will likely have a more conservative portfolio with lower returns than when you were working.
When in doubt, sit down with a financial advisor to discuss your personal goals and situation. They will provide not only expertise but also an unbiased perspective, and help you approach the problem from multiple angles.