How much do Americans who claim Social Security early actually receive each month?

If you qualify for a Social Security retirement benefit based on your work history, you can choose to start collecting it anytime between age 62 and 70. For most people reading this (those born in 1960 and after), full retirement. the social security age is 67.

According to the most recent information from the Social Security Administration (SSA), 63 percent of the more than 50 million retired workers collecting Social Security began collecting their monthly benefits before reaching full retirement age.

Image source: Getty Images.

How much do early claimants get?

I won’t keep you in suspense. The average Social Security benefit for those who choose to claim Social Security before full retirement age is significantly lower, at $1,668 per month.

According to the SSA’s 2024 Social Security Statistical Supplement, the average monthly Social Security benefit for retired workers is $1,905. However, if we consider only people who he didn’t start collecting their benefits early, the average is $2,310.

Think about it. The average person who claims Social Security early receives just over $20,000 a year in inflation-protected retirement income. The average person who doesn’t claim early gets $27,720 a year — 39% more.

To be clear, this average includes beneficiaries who began collecting their benefit at any time between age 62 and when they reached full retirement age (between 65 and 67, depending on the year of birth).

Data source: Social Security Administration. The average is from December 2023.

How much will your Is Social Security Benefit If You Start Early?

You can get an estimate of your future Social Security benefit based on your actual work record by viewing your most recent Social Security return. If you haven’t already, create an account on SSA.gov and find yours — not only does it have a benefit estimate, but it’s full of other valuable information for pre-retirees.

Your statement will estimate your benefit at full retirement age and a few other common claim ages, such as 62. But if you don’t claim Social Security at exactly one of the reference ages listed on your return, here are the rules:

• If you claim Social Security early, your benefit will be permanently reduced by 6.67% for each year before full retirement age, up to 36 months before.
• After 36 months before full retirement age, your benefit will be further reduced by 5% per year until age 62.

Here’s what that means. If your full retirement age is 67 and you start collecting Social Security at age 62, your benefit will be reduced by 30% of what it would have been at full retirement age. Here’s how the math works for all early claim ages:

Data source: SSA. Assumes a full retirement age of 67.

It is also worth noting that these percentages are prorated monthly. For example, if you decide to start collecting Social Security three years and two months before you reach full retirement age, your discount percentage would be about 20.83%.

Should you wait until full retirement age?

To be perfectly clear, there are some good reasons to start collecting Social Security early, even with the reduced benefit. If you need to retire early for health reasons, applying for Social Security might be a good idea.

It’s important to realize that the system is designed so that the average retired worker receives roughly the same amount of money over their lifetime, regardless of when benefits began. In other words, if you claim early, you’ll get less money per month, but you’ll be drawing money for more years than if you wait.