The most important social security table you will ever see | Personal finance

(Christy Bieber)

As a retiree, there are good chances that you will rely on your social security benefits to help you cover your living expenses. These benefits provide thousands of dollars in monthly income, and unlike your savings, they can not run out as long as you are alive. Even if you can not live on them alone, make sure you understand how much money they will give, as well as how decisions you make regarding them will affect the monthly amount.

That is why this is the most important social security table you will ever see. The information in it makes it easy to understand how your choices affect your retirement income so you do not make a decision about your benefits that you are going to regret.

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This important social security table shows you everything you need to know

Each retiree receives a standard social security benefit based on the salary they have earned during their career. However, seniors who do not claim their retirement check at exactly their stated full retirement age (FRA) will not receive this standard benefit.

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FRA is between 66 and four months and 67 depending on the year of birth, while benefits become available at 62. Anyone who starts receiving payments before FRA will see a reduction to their standard benefit, while anyone who delays and does not receive their first payment until later will have the opportunity to increase it.

Because payments change based on the age at which you claim them, it is crucial to make an informed choice about when you will first receive your monthly retirement income from Social Security. That’s why this table is the most important thing you’ll ever see. It shows how the average monthly social security benefit of $ 1,657 can be affected by applying for benefits at different ages. It is based on a person who has a full retirement age of 67.

Claim age Monthly payment Reduction / increase of benefits
62 $ 1,160 -30%
63 $ 1,243 -25%
64 $ 1,326 -20%
65 $ 1,437 -13.3%
66 $ 1,546 -6.7%
67 $ 1,657 None
68 $ 1,790 +8%
69 $ 1,922 +16%
70 $ 2,055 +24%

Data source: Social Security Administration. Calculations by author.

As you can see, the difference in your monthly income can be quite dramatic. Your decision to start benefits at the youngest age you are allowed at 62 would leave you with $ 895 a month less than the amount you would receive each month if you waited as long as possible to maximize your income .

What is the right age to claim your benefits?

This Social Security table gives you insight into how a decision on when to start receiving payments affects the money you have to live on. This leads to the point that if you choose an earlier payment, you get much smaller checks – although of course you get many more of them. If you delay, your income increases dramatically, but you miss out on many years of money.

Ultimately, you should consider your health, how long you are likely to live, and your preferences as to whether you would rather start paying ASAP, even if that means you get less money. This will guide you in your choice of when the best romp is for your personal situation.

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