If you’re 65 years old and haven’t applied for Social Security retirement benefits yet, you might be wondering how to maximize your monthly payments. Understanding how the Social Security Administration (SSA) works can help you get the most out of your benefits. Here are some key points to consider.
Full Retirement Age (FRA) and Benefits
What Is FRA?
Your Full Retirement Age (FRA) is when you can start receiving 100% of your Social Security benefits. For people turning 66 in 2025, the FRA is 66 years and 10 months. This means you need to wait until this age to get your full benefits.
Delaying Benefits
If you wait to file for Social Security until after your FRA, your benefits will increase. For each year you delay, your payment goes up by about 8%. So, if you wait until you are 70, you could receive up to 24% more each month. This can make a big difference in your retirement income.
Early Filing and Its Impact
Early Filing at 62
If you choose to file for Social Security at age 62, you will receive reduced benefits. The reduction can be as much as 30%, which means you’ll get much less each month. This might hurt your financial situation, especially with inflation and unexpected expenses.
Deciding When to File
Deciding when to apply for Social Security depends on your personal situation. If you need the money right away, you might not be able to wait. But if you want the highest possible monthly payment, it’s best to wait until you’re 70.
Maximum Benefits at FRA
Benefits at 66 and 10 Months
If you start receiving benefits at 66 years and 10 months in 2025, you can get up to $3,822 per month. This amount can increase with the Cost of Living Adjustment (COLA). The COLA for 2025 is expected to be around 2.63%, which might not be a significant boost, but it helps maintain your buying power.
Using a Social Security Statement
What Is a Statement?
The SSA provides a statement that shows how much money you can expect to receive at different ages. It also includes information on disability benefits and survivor benefits for your family. This statement can help you plan when to start receiving benefits.
To get the most out of your Social Security benefits, it’s important to understand how the system works. Waiting until your FRA or even longer can significantly increase your monthly payments. Always consider your financial needs and use the SSA’s resources to make the best decision for your situation.
1. What is Full Retirement Age (FRA)?
FRA is the age when you can start receiving 100% of your Social Security benefits. For those turning 66 in 2025, the FRA is 66 years and 10 months.
2. How much can I get if I delay filing until age 70?
If you delay filing until age 70, your benefits can increase by up to 24% compared to your FRA benefits.
3. What happens if I file for Social Security at age 62?
Filing at 62 results in a reduced benefit, up to 30% less than what you would get at your FRA.
4. How can I find out how much I’ll receive in benefits?
You can use the Social Security Statement provided by the SSA, which shows your estimated benefits at different ages.
5. What is the COLA and how does it affect my benefits?
The Cost of Living Adjustment (COLA) helps maintain your buying power by adjusting benefits based on inflation. The projected COLA for 2025 is about 2.63%.