Median Social Security Check at Age 70: What You Need to Know
When it comes to retirement, one of the most common questions people ask is about their Social Security benefits. If you’re nearing retirement age or planning for the future, you may wonder, “How much will I get from Social Security if I wait until age 70 to start claiming?” In this article, we’ll explain everything you need to know about the median Social Security check at age 70, how it’s calculated, and why waiting can benefit you.
What Is the Median Social Security Check at Age 70?
The median Social Security check at age 70 refers to the typical monthly amount people receive once they reach age 70 and begin collecting Social Security benefits. The amount you receive depends on how much you’ve earned during your working years and when you choose to start claiming.
Most people can begin claiming benefits at age 62, but if you choose to wait until age 70, your benefit will be higher. This is because Social Security increases your monthly check by 8% per year for each year you delay starting benefits after your full retirement age (which is 66 or 67, depending on your birth year).
How Much Is the Median Social Security Check at Age 70?
As of 2024, the median Social Security check at age 70 is about $1,800 per month. However, this can vary. The amount you receive depends on how much you’ve earned over your lifetime, how many years you’ve worked, and other factors.
While $1,800 a month may sound like a lot, it’s important to know that Social Security is meant to replace only a portion of your pre-retirement income. For most people, it’s not enough to live on by itself, so having additional savings or retirement funds is crucial.
How Social Security Benefits Are Calculated
Your Social Security benefits are based on your lifetime earnings. The Social Security Administration (SSA) uses your highest-earning 35 years to calculate your monthly benefit.
Here’s a quick breakdown of how the calculation works:
- Lifetime Earnings: The SSA looks at your highest-earning 35 years. If you worked for less than 35 years, they fill in the gaps with zeroes, which can reduce your benefit.
- Primary Insurance Amount (PIA): Based on your lifetime earnings, the SSA calculates your Primary Insurance Amount (PIA). This is the amount you would receive if you claim benefits at full retirement age (FRA).
- Delayed Retirement Credits: If you wait to claim Social Security after FRA (up until age 70), your benefit increases by 8% per year. This is why waiting until age 70 can significantly boost your monthly check.
For example, if your PIA at full retirement age is $2,000 per month, waiting until age 70 could increase your benefit to $2,640 per month.
Why Waiting Until Age 70 Pays Off
There are several reasons why it can be beneficial to wait until age 70 to start claiming your Social Security benefits:
1. Higher Monthly Payments
If you start claiming Social Security benefits at age 70, your monthly check will be higher. The more you wait, the more your benefit grows due to the delayed retirement credits (8% per year after full retirement age).
For example, if you would get $2,000 per month at full retirement age, waiting until age 70 could boost that amount to $2,640 per month. Over 20 years, this adds up to a significant difference.
2. Increased Benefits for Your Spouse
If you’re married, your spouse may also benefit from waiting. If you wait until age 70 to start collecting benefits, your spouse may receive higher survivor benefits. Survivor benefits are based on your monthly check, so delaying your benefits could provide a larger financial cushion for your spouse after your passing.
3. Inflation Protection
Social Security benefits are adjusted each year for inflation through cost-of-living adjustments (COLA). The higher your benefit, the more it will increase with COLA over time. This means that starting with a higher monthly benefit at age 70 will protect you against rising living costs.
4. Lifetime Benefits
Social Security benefits are designed to last for your lifetime. By waiting until age 70, you lock in a higher monthly check that will last throughout retirement. This is especially beneficial if you expect to live into your 80s or 90s.
Things to Consider Before Waiting Until Age 70
While there are many advantages to waiting until age 70, there are also some important factors to consider:
1. Your Health
If you have health issues or a family history of early death, waiting may not be the best option. In these cases, starting benefits earlier may help you get more out of the system.
2. Financial Need
If you need income earlier than age 70 to cover living expenses, waiting may not be practical. Social Security can be an important income source, and waiting may not be an option if you need money sooner.
3. Employment Plans
If you plan to keep working after you reach full retirement age, your Social Security benefits may be reduced if you earn more than a certain amount. This is something to think about if you want to keep working part-time while collecting Social Security.
Real-Life Example: Waiting Until Age 70
Let’s look at a real-world example. Suppose you are 60 years old and planning for your retirement. You know that if you start claiming Social Security at age 62, you’ll receive a reduced benefit. However, if you wait until age 70, your benefits will be much higher.
For example, let’s say your full retirement benefit (PIA) at age 66 is $2,000 per month. If you wait until age 70, your benefit will increase by 32% (8% per year for four years). That means you would receive $2,640 per month instead of $2,000. Over the course of your retirement, this could add up to an extra $150,000 or more.
If you live a long time, the additional income could make a huge difference in your financial security.
Maximizing Your Social Security Benefits
To get the most out of your Social Security benefits, follow these tips:
- Work at least 35 years: The SSA uses your highest-earning 35 years to calculate your benefits, so make sure you have enough years of work to avoid zeros being added.
- Earn more money: Higher lifetime earnings mean higher Social Security benefits. If possible, focus on earning more in your working years.
- Delay claiming until age 70: Waiting until age 70 can increase your monthly benefit by 8% per year, resulting in a higher long-term payout.
Conclusion
The median Social Security check at age 70 is an important factor in planning for your retirement. By waiting until age 70 to claim your benefits, you can significantly increase your monthly check, which can provide more financial security during retirement. However, whether you should wait depends on your health, financial needs, and overall retirement goals.
To see how much you can expect to receive, check out the Social Security Administration’s calculator or speak with a financial advisor to make the best choice for your situation.
