The Most Important Social Security Table You’ll Ever See | Business News


The income you get from Social Security is important for a few reasons. First, you can rely on it if you don’t retire a robust nest egg. Second, your retirement expenses may increase more than expected due to factors such as inflation and health care costs. And finally, the monthly Social Security benefit you are committing to is the benefit you can look forward to for a lifetime, while other sources of income may not be as stable.

That is why it is essential to secure a monthly benefit that will allow you to fully enjoy your retirement and to cover the costs of your seniors worry-free. But many seniors don’t realize that one simple decision can mean the difference between a higher benefit and a much lower one.

Choose the correct submission age

Social Security does not pay the same monthly benefit to everyone who is entitled to it. Instead, your benefit is calculated based on your personal income history.

Image source: Getty Images.

But there is another factor that determines how much monthly income you receive: your application age. And you get choices in that regard.

The earliest age to claim Social Security is 62 years. But you are not entitled to your full monthly benefit until you reach full retirement age or FRA. And that age is 66, 67, or somewhere in between, depending on when you were born.

There is also the option to defer your Social Security claim after FRA. For every year you do, your monthly benefit grows until you’re 70.

So let’s say you’re entitled to a monthly benefit of $1800 at an FRA of 67. You might think it won’t make much of a difference to claim Social Security early. But check out what monthly benefit you could get based on your filing age:

submission age:

Monthly benefit



















Calculations by author.

As you can see, there is a huge difference between claiming benefits at age 62 and waiting until age 70 – a difference of $972 to be exact. The advantage of applying for benefits at the age of 62 is, of course, that you will receive your money sooner. Waiting until age 70 may mean delaying retirement, and after a lifetime of hard work, that may be less than ideal. However, the point is to understand how your filing age affects the amount you receive from Social Security each month — and then claim your benefits accordingly.

If you’re not sure where the numbers above come from, here’s the scoop. For each year you file for Social Security before FRA, your benefit will be reduced by 6.67% for the first three years you claim in advance and by 5% per year thereafter. So if you sign up for Social Security three years early, you’ll see a 20% gain on your benefits. Sign up five years early and you’ll get a 30% hit.

Meanwhile, your benefit grows by 8% for every year you delay your application beyond FRA. So if you delay your claim for three years, you can increase your Social Security salary by 24%.

Now that you know the math, you can use it when deciding when to claim benefits. This will help you avoid making a mistake. Or, to put it more positively, it might inspire you to sign up at an age that will give you the income you need to make the most of your retirement.

The $18,984 Social Security Bonus Most Retirees Completely Overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” can give your retirement income a boost. For example, one simple trick could save you as much as $18,984…a year! Once you know how to maximize your Social Security benefits, we think you can retire confidently with the peace of mind we all strive for. Click here to learn how to learn more about these strategies.

The Motley Fool has a disclosure policy.

The Valley Voice
The Valley Voice
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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