The most important social security table you will ever see
The most important social security table you will ever see

The most important social security table you will ever see

Social security ends up being an important source of income for many seniors. And the reality is that even if you save well up for retirement, you may still need these benefits to supplement your withdrawals from your savings.

Therefore, it is important to apply for benefits strategically. While your earnings history will play a big role in the monthly benefit you end up with, your application age will also determine what that benefit looks like.

File at the right time

You are entitled to your full monthly social security benefit per full retirement ageor OFF. FRA is either 66, 67 or somewhere in the middle, depending on when you were born.

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But you are not required to sign up Social Security at FRA. You can get benefits as early as age 62and you can technically delay your archiving indefinitely.

That said, they are reduced for each month you require benefits prior to OFF. And for every month you delay your application beyond FRA, they increase up to 70 years, after which there is no financial incentive to wait to file any longer.

No matter what age you land on when it comes to requiring social security, it is important that you recognize what impact it will have on your benefits. You might think that it’s not a big deal to file a little early, for example, only to realize that it’s causing a more massive hit for your benefits than expected.

Similarly, you may not be motivated to delay your filing for that long. But you may be surprised at what a difference it makes to persevere.

Still not convinced? Imagine you are eligible for a monthly benefit of $ 1,600 to an FRA of 67. This is what your monthly benefit looks like based on your application age:

Filing age

Monthly payment


$ 1,120


$ 1,200


$ 1,280


$ 1,378


$ 1,493


$ 1,600


$ 1,728


$ 1,856


$ 1,984

Calculations by author.

There is not much difference between requiring social security for an FRA of 67 versus filing a year ahead of time. In that case, you reduce your monthly benefit by just over $ 100. And if you have a reason to file a year ahead of time, do not.

But notice what happens to your monthly benefit if you submit an application at age 62. Suddenly, you get hundreds of dollars less month. It’s a hit you might not be able to afford.

Moreover, you can not fail to notice the difference between claiming benefits at the age of 62 compared to enduring up to 70 years. In this example, you’re talking about winning – or losing – $ 864 a month. That’s a gap of more than $ 10,000 in income per year.

What is the right application age for you?

It may be the case that social security claims at the age of 62 or 63 make sense to you, despite the fact that it causes your benefits to be affected by the filing so early. Or, if you are low on savingsyou may decide to defer your application for at least one year after OFF to give your monthly benefit a boost.

There is no right or wrong age to require social security because it really depends on your financial circumstances and goals. But no matter when you choose to sign up, make sure you first understand what monthly benefit your decision will give you, and make sure it is an amount that allows you to maintain the retirement lifestyle you hope for. .

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