The Typical Social Security Payment Received at Age 67
The Typical Social Security Payment Received at Age 67
Let's cut to the chase. A typical 67-year-old retiree drawing from Social Security pocketed roughly $1,883.50 per month in 2024, as per the Annual Statistical Supplement. That equates to approximately $22,600 in annual income, safeguarded from the effects of inflation.
However, this figure falls short of the general average benefit paid to retired workers, which stood at $1,905.31 per month.
So, why is the 67-year-old benefit lower than average?
67 marks the full retirement age for individuals born in 1960 and beyond, while for those who've already claimed, it ranges from 66 to 67 during the last decade. The contrast between the average benefit at 67 and the overall average originates from the fact that it only caters to people who either started Social Security early or commenced their benefits precisely at full retirement age, give or take a few months.
To put it another way, the major factor behind a lower-than-average benefit at 67 is the omission of individuals who waited beyond a few months past full retirement age to initiate their benefits.
Approximately 12% of the 50.1 million retirees on Social Security chose to delay their benefits past the full retirement age. In contrast, only 6% of the 67-year-olds enjoy delayed retirement credit, and among those who do, they are limited to starting Social Security benefits only a few months before full retirement age.
As a closing note, remember that this is just an average. There are 67-year-olds who reap more than twice the average benefit, and there are some who draw significantly less.
The gap between the average and the 67-year-old benefit could be bridged with strategic finance planning, considering that individuals who delay their benefits beyond a few months can potentially receive a higher retirement income. In the realm of retirement finance, delaying benefits can translate into increased money in the long term.