New figures from Social Security confirm that benefits have been rising, and in particular, those who wait until the age of 70 to apply for benefits are now at their highest level ever. Yet, on the other hand, most retirees still opt for claiming early despite the fact that they are letting go of thousands of dollars from their benefit yearly.
If you are close to retirement, being aware of the magnitude of what you are facing is extremely necessary.
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How Much Can You Get from Social Security in 2025?
For the ones who will be 70 years old this year and are applying for their first benefit, the monthly retirement benefit has soared to the record high of $5,108. This is the highest amount a retiree can have per month in 2025 through Social Security.
To get there an individual has to work for 35 years at the very least and earn the highest wages that one can pay Social Security taxes on. And as equally as good, they have to put off claiming their benefits all the way to the 70th year of their lifetime.
While most people don’t manage to get the full amount— but a lot are not far from it.
The Average Benefit Is Much Lower
Even if the maximum is $5,108, the average monthly benefit of all the retired workers is far below this value having this spring been just below $2,000. This average comprises individuals who retired early at the age of 62, those who claimed benefits at their full retirement age of 66 or 67, and others who delayed past it.
Even so, the gap between the two periods shows a marked difference. For instance, a 62 years old person who files may receive not more than half of the amount s/he would have got at 70 — just due to the difference in choosing the time.
Why Most Americans Are Still Optimistic About Early Retirement
Notwithstanding the clear financial rewards associated with waiting, just about 1 in 10 retirees really delays securing their benefits until age 70. The great majority of retirees claim benefits before their own retirement age.
Why? The reasons are multiple, and can easily be listed:
- Health-related problems: Timely only, such retired people feel that they will not stay alive for a long time to benefit from the delayed social security benefits.
- Need at the moment: A lot of the Americans retire earlier than the pre-planned date due to the loss of the job and health conditions and need instant income.
- Not being informed: Some of the citizens just do not know that by waiting they could get a significant boost.
How Beneficial Is The Wait?
Each year you postpone your Social Security claiming beyond retirement age, your monthly benefit increases by approximately 8% — until you are 70. That’s a surefire way to improve your benefits, something that most savings accounts or other low-risk investments can’t provide today.
Furthermore, once in place, these payments are guaranteed for life and will adjust annually for inflation.
This year’s cost-of-living increase has already raised payments, and since prices are still going up, this has become a must-have for the most of the elderly citizens.
Is the Age of 70 the Most Suitable Time for You?
The decision on when to apply for the benefit of Social Security is not a single-size choice that fits all. If you experience health issues, have insufficient savings, or have limited working options, taking the early benefits might be the best choice. However, for those in good health and who can afford waiting, it could be a significant increase in their financial safety in the later years.
Just because you retire doesn’t mean you have to start enjoying the benefits immediately. You can stop working at 65 but still not take your Social Security until 70 to jack up your benefits even more.
By the time you reach 70, getting over $5,100 from Social Security every month seems like the best thing one can get for waiting. However, your timing should be right, and what you decide will shape your retirement period for a long time.
You should spend some time doing research on your choices, figuring out your figures, and taking the step to find the best option that will leave you in the most comfortable position in the future.
