Planning for retirement means figuring out how much income you’ll have. And for many Americans, Social Security is a big part of that. Your monthly benefit at full retirement age (67) depends on your work and earnings history. A financial advisor help you determine when to start and build a retirement plan that fits your goals and finances.
Average Social Security Benefit at Age 67
Social Security benefits are adjusted annually to account for inflation through cost-of-living adjustments (COLAs). These changes help maintain the purchasing power of benefits over time, though the actual impact varies based on when and how you claim.
Your benefit amount will depend on your work history, earnings record and the age you begin collecting. The Social Security Administration provides personalized estimates through annual statements and its online calculator.
There is a simple way to estimate future benefit amounts. Apply the SSA’s annual cost-of-living adjustment (COLA), which is designed to help benefits keep pace with inflation. In 2024, benefits increased by 3.2%, and in 2025, they rose by 2.5%. Based on those adjustments:
- A 3.2% COLA puts the estimated average monthly benefit for 2024 at $2,415.54.
- For 2025, a 2.5% COLA means the estimated average monthly benefit increases to $2,475.93.
This means that if you elect Social Security benefits at age 67 in 2025, you’ll get around $2,475.93 per month. This also assumes you had average lifetime earnings and claimed at your full retirement age. Keep in mind that these are just estimates, so your monthly benefit amount will likely vary.
What Happens If You Claim Early?
Claiming Social Security before your full retirement age leads to a lower monthly benefit for life. The Social Security Administration reduces your payment by a fixed percentage for each month you claim early.
For the first 36 months before full retirement age, the reduction is about 0.56% per month. After that, the reduction is roughly 0.42% per month.
If your full retirement age is 67 and you begin collecting at 62, your benefit would be reduced for 60 months total. That results in a 30% cut. So, instead of receiving $2,475.93 per month, your benefit would be about $1,733.15.
| Age | Percentage of Full Retirement Benefits Received |
|---|---|
| 66 | 93.3% |
| 66 and 1 month | 93.9% |
| 66 and 2 months | 94.4% |
| 66 and 3 months | 95.0% |
| 66 and 4 months | 95.6% |
| 66 and 5 months | 96.1% |
| 66 and 6 months | 96.7% |
| 66 and 7 months | 97.2% |
| 66 and 8 months | 97.8% |
| 66 and 9 months | 98.3% |
| 66 and 10 months | 98.9% |
| 66 and 11 months | 99.4% |
| 67 | 100.0% |
How to Determine Your Full Retirement Age
Your full retirement age (FRA) is when you can get your full Social Security benefit. If you claim before this age, your monthly payment will be lower for life. If you wait past your FRA, your benefit will go up. Knowing your FRA helps you avoid filing too early.
Your full retirement age depends on the year in which you were born:
- If you were born between 1943 and 1954, your FRA is 66.
- If you were born in 1960 or later, your FRA is 67.
- If your birth year falls between 1955 and 1959, your FRA will be somewhere between 66 and 67. For example, 66 and 8 months if you were born in 1958.
This gradual increase in FRA was introduced by Congress in 1983 to help ensure the long-term sustainability of the Social Security program. At one time, full retirement age was 65 for everyone, but as people began living longer, lawmakers adjusted the rules to reflect those changes. This also gave people the flexibility to choose the best age for retirement based on their own health, goals, and finances.
One small detail that can also affect your FRA is your exact birthday. If you were born on the first day of a month, the Social Security Administration will treat your birthday as if it occurred the month before. For example, if your birthday is on March 1, the SSA will calculate your benefits as if you were born in February.
You can use the chart below, courtesy of the SSA, to find your exact full retirement age based on your birth year.
| Birth Year | Full Retirement Age |
|---|---|
| 1943-1954 | 66 years old |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 years old |
Frequently Asked Questions (FAQs)
How Is My Social Security Benefit Calculated?
Your benefit is based on your highest 35 years of earnings, adjusted for inflation. The Social Security Administration uses a formula to determine your average indexed monthly earnings (AIME), which is then applied to a benefit formula to calculate your primary insurance amount (PIA), the amount you’d receive at full retirement age.
Can I Change My Mind After I Start Claiming Social Security?
Yes, but only under certain conditions. If you’ve been receiving benefits for less than 12 months, you can withdraw your application and repay all the benefits received. This essentially gives you a fresh start and can help you maximize your Social Security benefits at a later date. You can only do this once in your lifetime.
Will My Social Security Benefits Be Taxed?
Possibly. If your income exceeds certain thresholds, a portion of your Social Security benefits may be subject to federal income tax. For individuals with a combined income over $25,000 or couples over $32,000, up to 85% of benefits could be taxable. Some states also tax Social Security, so it’s important to check your state’s rules.
Bottom Line
Deciding when to claim Social Security benefits is one of the most important choices you’ll make in retirement planning. Claiming at age 67 allows you to receive your full benefit amount, while claiming early can reduce your monthly payments for life. On the other hand, waiting beyond full retirement age could increase your benefit.
Retirement Planning Tips
- A financial advisor can help you determine when to retire and manage other factors to maximize your benefits. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you want to know how much your nest egg could grow over time, SmartAsset’s retirement calculator could help you get an estimate.
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