When to claim Social Security benefits is one of the most important financial decisions most people will make during retirement. A study published in 2022 by the National Bureau of Economic Research concluded that over 90% workers aged 45 to 62 would optimize benefits by claiming Social Security at age 70.

The study also concluded fewer than 1% of those workers would optimize benefits by claiming before age 66. Yet, about half of newly awarded retired workers start Social Security before age 66 in any given year. Of course, there are situations in which claiming early is sensible, but some workers may not realize how much money they are leaving behind.

Read on to see the average retired-worker benefit at ages 62, 65, and 70.

Image source: Getty Images.

Here's the average Social Security benefit for retirees at different ages

The Social Security Administration periodically publishes anonymized benefit data to promote transparency and improve public understanding. The chart below is populated with data from a recently updated biannual report. It shows the average monthly Social Security benefit paid to retired workers aged 62 to 70 in December 2024.

Data source: Social Security Administration. Note: Payments have been rounded to the nearest dollar.

As shown above, the average Social Security payout generally increases with age, such that the average 70-year-old retiree receives about $806 per month more than the average 62-year-old retiree.

Readers should focus on ages 62, 65, and 70 because they cover the decision-making spectrum: 62 is the earliest possible claim age, 70 is the latest rational claim age, and 65 provides a claim age between the two extremes.

The Social Security Administration considers several variables when determining retired-worker benefits, but that chart above shows clearly that claim age plays an important role. Specifically, if all other variables are equal, retirees will receive the smallest possible benefit at age 62 and the biggest possible benefit at age 70.

Here's how your Social Security benefit is calculated

Social Security benefits for retired workers are based on work history, lifetime income, and claim age. Exactly how the Social Security Administration (SSA) uses those variables to determine benefits is detailed in the two-step process below:

• Step 1: The SSA determines the primary insurance amount (PIA) for each worker by applying a formula to their inflation-adjusted income. The PIA is the benefit a worker will receive if they claim Social Security at full retirement age (FRA), which is 67 for anyone born in 1960 or later.
• Step 2: The SSA adjusts the PIA for early or delayed claims. Workers that start Social Security before FRA get less than 100% of their PIA, and workers that start Social Security after FRA get more than 100% of their PIA.

There are two qualifications to the second step. First, no one can claim benefits earlier than age 62. Second, there is no advantage to claiming benefits later than age 70.

The chart below shows the relationship between birth year and FRA. It also shows the retirement benefit (as a percentage of PIA) a worker will receive if they start Social Security at ages 62 and 70. In other words, it lists the smallest and largest payouts for people in each FRA grouping.

Data source: The Social Security Administration.

Here is the most important lesson in the chart above: Retirees can substantially increase their benefit by delaying Social Security until age 70. For instance, a worker born in 1960 or later will receive 77% more in monthly benefits if they claim at age 70 rather than age 62.

Having said that, claiming Social Security at age 70 is not the best decision for everyone. Retired workers in difficult financial situations may be better off starting benefits at age 62. The same is true of retired workers not expecting to live beyond age 75.

Readers that need personalized advice about when to start Social Security should consult a financial advisor, or at least consider different scenarios using a Social Security optimization calculator, such as Open Social Security.