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- More Americans are turning 65 each year, but not yet old enough for full Social Security (usatoday.com)
A wave of Americans are turning 65, but reaching full Social Security benefits requires a bit more patience. Due to increased life expectancy and the need to bolster Social Security funds, the full retirement age is now 67 for anyone born in 1960 or later.
While reduced benefits can start at 62, waiting until full retirement age results in a larger monthly check. This also impacts spousal and survivor benefits, which can be higher if the primary beneficiary waits.
Full retirement age is determined by birth year. For those born between 1943 and 1954, it’s 66. It then incrementally increases by two months per birth year until reaching 67 for those born in 1960 or later.
Taking Social Security early, at 62, means a reduced benefit. For someone turning 62 in 2025, benefits would be about 30% lower than if they waited until 67.
Some financial advisors suggest investing early Social Security payments to potentially offset this reduction. However, those retiring early due to health issues might consider applying for disability benefits, which convert to retirement benefits at full retirement age.
Delaying Social Security past full retirement age can increase benefits by 8% per year, up to age 70. This strategy requires sufficient income and assets to bridge the gap until benefits begin. Continued work past full retirement age can also boost benefits by adding to lifetime earnings.
Despite the potential gains of waiting, most people start Social Security early. The median retirement age is 62, and the median age for collecting benefits is 64. Unforeseen circumstances, such as health issues or company changes, often lead to earlier-than-planned retirements.
The average Social Security benefit was approximately $1,976 in January 2025, a significant increase from the $207 average in 1975.