In a recent analysis of Social Security benefit claims, data from the Social Security Administration (SSA) reveals that most Americans begin receiving their retirement benefits at age 66. This age is particularly popular due to it being the full retirement age (FRA) for individuals born between 1943 and 1954. As more people approach retirement, understanding the impact of different claiming ages on benefits becomes crucial.
Individuals can start claiming Social Security retirement benefits as early as age 62. However, the monthly payments significantly increase for each month benefits are delayed, up to age 70. Specifically, delaying benefits can result in an increase of approximately 6% to 8% for each year of delay. For those born in 1960 or later, the FRA is 67 years.
Trends in Retirement Benefit Claiming Ages
According to SSA data from 2024, the age at which people begin claiming benefits varies widely. Here is a breakdown of popular ages and the corresponding percentage of individuals who chose to start collecting at those ages:
– **Age 62**: This is the earliest age to sign up. In 2024, 23.3% of women and 22% of men began claiming benefits at this age. However, choosing this option results in a 30% reduction in monthly payments for individuals whose FRA is 67.
– **Age 63**: This age is one of the least common, with only 6.2% of men and 6.4% of women starting their benefits at this time. Those who elect to start at age 63 face a 25% reduction in payments compared to their FRA.
– **Age 64**: Similar to age 63, this option is also relatively unpopular, attracting 6.5% of men and 7% of women. Individuals claiming at this age see a 20% reduction in their benefits.
– **Age 65**: In 2024, 15.3% of both men and women opted to collect their benefits at age 65, coinciding with the enrollment age for Medicare. This choice results in a 13.3% deduction if the FRA is 67.
– **Age 66**: This is the most popular age for claiming benefits, with 27% of men and 25.3% of women beginning to collect at this age. However, it comes with a 6.7% reduction in monthly payments for those whose FRA is 67.
– **Age 67**: Individuals born in 1960 or later can claim their full benefits starting at this age. In 2024, 14.5% of men and 13% of women chose to start collecting at age 67.
– **Age 68**: Delaying benefits until age 68 is a choice made by 12.5% of men and 12.3% of women in 2024. This delay results in an 8% increase in their monthly benefits.
– **Age 69**: In 2024, 14.5% of men and 13.2% of women opted to begin claiming at this age, which leads to a 16% increase in their payouts.
– **Age 70 and older**: Waiting until age 70 provides the maximum monthly benefit, yielding a 24% increase over the payments at FRA. In 2024, approximately 8.4% of women and 9.1% of men delayed their claims until this age.
Understanding these trends can help individuals make informed decisions about when to start claiming Social Security benefits. For personalized calculations and to assess how different claiming ages may affect individual benefits, the SSA provides a Retirement Age Calculator at SSA.gov/benefits/retirement/planner/ageincrease.html.
As individuals approach retirement, analyzing the implications of their choices regarding Social Security is essential for financial planning.