Recent data from the Social Security Administration (SSA) reveals that many Americans opt to begin receiving their Social Security retirement benefits at an earlier age, often leading to reduced monthly payouts. Individuals can start claiming benefits as early as age 62, but the financial implications of their chosen age can be significant.
According to the SSA’s latest statistics, in 2024, approximately 23.3% of women and 22% of men began collecting Social Security at age 62, the earliest eligibility age. By choosing this option, retirees face a 30% reduction in their monthly payments if their full retirement age (FRA) is 67.
Understanding Popular Ages for Claiming Benefits
The decision to start benefits at age 63 is less common, with only 6.2% of men and 6.4% of women opting for this age in 2024. This choice results in a 25% cut in payments for those with an FRA of 67. Similarly, age 64 sees only 6.5% of men and 7% of women beginning their benefits, facing a 20% reduction in benefits.
As individuals approach age 65, a more significant number start to collect benefits. In 2024, 15.3% of men and women chose this age to begin receiving payments, which coincides with the enrollment age for Medicare. Those claiming at age 65 experience a 13.3% decrease in payments if their FRA is 67.
Age 66 marks a notable shift, as it is the FRA for those born between 1943 and 1954. This has made it a popular choice, with 27% of men and 25.3% of women signing up for benefits at this age. However, claiming at this point results in a 6.7% reduction in monthly payments.
Individuals born in 1960 or later face a different scenario. At age 67, they can claim their benefits without any reduction. In 2024, 14.5% of men and 13% of women opted for this age.
Benefits of Delaying Claims
For some, delaying benefits can lead to increased payouts. In 2024, 12.5% of men and 12.3% of women chose to wait until age 68, which results in an 8% increase in benefits.
The trend continues with those who wait until age 69, with 14.5% of men and 13.2% of women claiming their benefits at this age, resulting in a generous 16% increase. Finally, those who delay until age 70, which offers the maximum payout, saw only 8.4% of women and 9.1% of men choose this option in 2024. Waiting until this age results in a remarkable 24% increase over the benefits at their FRA of 67.
Understanding these choices can help individuals make informed decisions about when to claim Social Security benefits. For more detailed calculations regarding benefit reductions or increases based on claiming age, the SSA provides a Retirement Age Calculator available at SSA.gov.
As millions approach retirement, these insights into Social Security claiming patterns offer critical information for planning financial futures.
