Is There A Difference Between Filing At Age 62 Or 63? (2024)

FAQs

Is There A Difference Between Filing At Age 62 Or 63? ›

The optimal answer depends on your financial situation, but you'll receive a higher monthly check if you wait longer. While you can begin taking Social Security as early as age 62, you'll receive your entire benefit if you delay until your full retirement age.

If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8% increase in your benefit.

People may be starting their benefits early for sound financial reasons. In a Great Recession survival strategy, for example, laid-off baby boomers were claiming their benefits early. But there are also psychological reasons for prematurely starting Social Security even when it doesn't make financial sense.

If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

At 63, workers born in or after 1960 receive 75% of the Social Security retirement benefit they get at 67 (full retirement age). Earnings and retirement date affect benefits. The maximum Social Security benefit at full retirement age is $3,822 per month in 2024. Social Security Administration.

If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase. If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age.

If you start to get benefits at age 62, we'll reduce your monthly benefit 30% to $1,400 to account for the longer time you receive benefits. This decrease is usually permanent. If you choose to delay your receipt of benefits until age 70, you would increase your monthly benefit to $2,480.

And as of 2021, according to the Congressional Research Service, about 30% of Social Security applicants were 62.

As we have discussed, you are eligible to start claiming your benefit when you turn 62. But the benefit you receive at 62 will be permanently lower than if you wait. Every month past age 62 you don't claim your benefit entitles you to a slightly larger payout when you do start collecting your benefit.

According to the SSA's Office of the Actuary, retired-worker beneficiaries who were 62 years old in December 2023 received an average check of $1,298.26. As for 67-year-old retired-worker beneficiaries, the average payout was a more robust $1,883.50.

How do I get the $16728 Social Security bonus? ›

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

If you work, and are at full retirement age or older, you may keep all of your benefits, no matter how much you earn. If you're younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits.

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

Posted in Assisted Living. In the United States it is generally considered that a senior citizen is anyone of retirement age, or a person that has reached age 62 or older.

This time span is generally referred to as "middle age" and can be defined as the time of ages about 40–45 to about 60–65. Many changes may occur between young adulthood and this stage.

Early retirement

You can receive Social Security retirement benefits as early as age 62. However, we'll reduce your benefit if you start receiving benefits before your full retirement age. For example, if you turn age 62 in 2024, your benefit would be about 30% lower than it would be at your full retirement age of 67.

Dave Ramsey said you can claim Social Security at 62 if you're going to invest every dollar. Most retirees can't do this, and many shouldn't even if they can, because investing money you're going to need really soon can be too risky.