This Is the Average Social Security Payout at Age 62

Many Americans reach Social Security age without fully understanding just what benefits they are eligible to collect at the age of 62. Social Security retirement benefits are based on work history, lifetime earnings, and claiming age. However, most people need to realize there is a formula that will calculate just what they can expect to live on monthly.

This formula is applied to the average inflation-adjusted earnings of a person’s 35 highest-paid years of work to determine a person’s primary insurance amount (PIA). The PIA is the benefit a worker will receive if they collect Social Security at full retirement age, which is age 67 for anyone born in 1960 or later.

The Social Security Administration calculates the PIA for each worker when they reach the age of 62. That is when they become eligible for retirement benefits.

However, this PIA is recalculated yearly as a person’s work history is updated. Therefore, retirees can increase their Social Security benefits by working longer.

62 is one of the most popular ages to start collecting Social Security, behind only 66 or full retirement age. According to Social Security Administration data, 22.9% of men chose to start collecting Social Security benefits at that age in 2022 compared to 24.5% of women.

Those born after 1960 who claim their benefits the month they turn 62 will get only 70% of what they would have received had they waited until the full retirement age of 67. Therefore, the average monthly retirement payment of $1,782 drops by 30% during the first month of eligibility to $1,247.40.

If you wait until you’re 63, you’ll get 75% of your full benefits. At 64, you’ll get 80% of the total average monthly payment. Finally, at 67, you’ll receive 100% of the full benefit. But if you wait even longer, you’ll receive an extra 0.7% for every month you delay up to 124% of the total benefit until you turn 70, when the delayed retirement credits stop.

The maximum benefit you can receive if you file at 62 — the youngest possible age — is $2,710 monthly. The maximum benefit of filing at full retirement age — between 66 and 67 — is $3,822 monthly. Finally, at 70, the age when extra benefits stop accruing, the maximum benefit is $4,873 per month.