The Typical Social Security Payout at the Age of 70
The Typical Social Security Payout at the Age of 70
Individuals eligible for Social Security benefits can commence receiving their monthly payments at any age between 62 and 70. It's common knowledge that delaying your collections will increase your monthly Social Security benefit. So, if you're contemplating waiting till the max age, you might be curious about the typical monthly payout for a 70-year-old.
The straightforward answer is that the typical 70-year-old retiree receives approximately $2,037.54 per month, or around $24,450 annually, from Social Security, as per the 2024 Social Security Statistical Supplement. This figure surpasses the overall retired worker average of $1,950.31 per month and even exceeds the average of $1,298.26 per month for a 62-year-old Social Security recipient.
The detailed explanation
However, it's crucial to take note of a vital factor.
In particular, this average encompasses retired worker beneficiaries who are 70 years old at the present time. This group consists of individuals who started receiving Social Security at age 62 eight years ago, those who held out until 70, and individuals who fall somewhere in between.
It's worth mentioning that the majority of Social Security recipients have been receiving their benefits before reaching their full retirement age. Out of the 50.1 million retired workers who collect Social Security, 31.6 million have reduced benefits due to early retirement. Only 6 million enjoy some form of delayed retirement credit, which means they started collecting Social Security at any point after their full retirement age (which ranges between 65 and 67, depending on their birth year).
Therefore, if we focus solely on 70-year-olds who put off collecting Social Security beyond their full retirement age, the average monthly payout increases significantly to $2,924.68, which equates to approximately $35,100 annually in inflation-adjusted retirement income.
If you're considering saving more for your retirement, you might want to explore alternative sources of finance beyond Social Security. With additional investments in finance, you could potentially boost your retirement income.
Moreover, if you manage to postpone your retirement until 70, you could not only maximize your Social Security benefits but also enjoy a significantly higher average monthly payout of approximately $2,924.68, equivalent to around $35,100 annually, thanks to delayed retirement credits.