One segment of Social Security is a supplemental retirement system that requires contributions in the form of payroll taxes. In 2020, that formula is: In 2020, that formula is: 90% of the first $960 of your AIME; Find out if it is better to start Social Security at 62 or 66 or at some other time. We have been married for 10 years. Click on it to see a full list of your wage income, dating back to your earliest days of working. $100,000 more at age 85: Now, looking to age 85: By taking Social Security at the early age of 62, their account balance at age 85 would total $1.39 million, versus $1.29 million were … Move it again to 63 and 1 month, and the benefit goes up again. This is what you'll receive if you retire at full retirement age. However, a worker would need to earn … By contrast, those who wait beyond 62 will get larger monthly payments. The benefit estimate you see in your online account assumes your earnings will remain the same for the rest of your working years. By claiming at 62 rather than 70, you'll get eight extra years' worth of those smaller payments. Under current law, this means that as soon as you turn 62 the bend points for your benefits will be set in stone. If the person starts Social Security benefits at age 62, then a 25% reduction will leave that monthly check at just $975. For example, if you were born between 1943 and 1954, your Social Security payment at 62 is 25percent lower than if you wait until 66 (your full retirement age). Each year thereafter adds 6 2/3% to your benefit, until you hit 100% at 66. You can also do this right from your account, using the slider below the benefit chart. Move the slider to age 63, for example, and you'll see a new, higher benefit estimate. Your Social Security benefit is calculated from these numbers. Hi Larry, I am 67 and my wife is 54. Review your earnings history alongside your tax returns, paying particular attention to the years you earned the most. Social Security is based on contributions that workers make into the system. In 2018, the most you can collect in Social Security benefits is $3,698, regardless of your age. how much social security will i get at 62 years of age: 12 3 4 5. And then you can start daydreaming about more pleasant things, like a comfortable and relaxing retirement. Stock Advisor launched in February of 2002. It is recommended that individuals contact Social Security three months prior to the date they would like benefits to start to go over options available. You can also get a good idea of what your Social Security benefits will be just by looking at the average and the maximum. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Here's how the math works. You can also use this feature to understand how much impact your future salary would have on your benefit. The precise amount that Social Security will pay you in benefits when you retire is determined by your average monthly income over your highest-paid 35 year… We would withhold $3,160 of your Social Security benefits ($1 for every $2 you earn over the limit). Social Security has fairly complex rules governing how much it pays in benefits. Age 62: $835 × â€¦ Let's take a closer look at Social Security's rules and what they say about your decision on when to start getting monthly checks from the government. AARP’s Social Security Benefits Calculator can provide more details on how filing early reduces benefits. Your Social Security Benefit. However, those who live longer than the breakeven point -- and right now, that includes the majority of recipients -- will get more by waiting rather than taking Social Security early. Returns as of 12/31/2020. Image source: Social Security Administration. If you were born in 1960 or later, for instance, filing at 62 could reduce your monthly payment by as much as 30 percent. If Carol lives to age 84, she can get varying amounts depending on whether she starts Social Security at age 62, 66, or 70. Stock Advisor launched in February of 2002. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. Eligible for a Pension Based on Work Not Covered By Social Security. The decision on when to take Social Security is highly personal and involves specific considerations about your own situation. Beyond that, additional years tack on 8% to your benefit, topping out at a 32% boost at age 70. So, if you’ve just lost your job for good and have little or no retirement savings, you have very little choice: Take Social Security at 62 and get on with life. For more information, read our publication Retirement Information For … As such, deciding when to take Social Security is an important decision! If you agree with that assumption, you don't have to do anything here. The maximum Social Security benefit in 2020 is $3,790. You have several ways to get a more meaningful handle on how much will be coming to you when you start collecting benefits:: Use a calculator. Take someone with an average Social Security benefit of roughly $1,300. The Social Security formula only considers your highest-paid 35 years of working, so any issues in your lower-wage years may not be relevant. How much you will get in Social Security if you make $40,000 and wait until 70 to take your benefits Published Tue, Nov 24 2020 10:00 AM EST Robert Exley Jr. @robertexley I started collecting my Social Security … If you are currently receiving only Medicare benefits, you can still get an estimate. Social Security Quick Calculator: Benefit Calculators. The cap changes annually, but it's $18,960 in 2021. Benefit estimates depend on your date of birth and on your earnings history. Because it is so hard to get approved in the first place, many people who receive these benefits worry about eventually losing them. For every $2 you earn above the cap, your Social Security benefit is reduced by $1. In fact, according to the Social Security Administration (SSA), between 63% to 74% of initial applications for SSDI benefits are denied. Your online account at my Social Security is a powerful tool that'll tell you what benefit you'll get at 62. I would like to retire at 62 and collect my full pension, but hold off taking Social Security until 64, how much would I get at 64 since I would not be working those 2 years. Market data powered by FactSet and Web Financial Group. Once you dive in and start exploring the value of delaying Social Security, you may even decide to extend your timeline. Let us say that you file for Social Security benefits at age 62 in January 2011 and your payment will be $600 per month ($7,200 for the year). It takes years for recipients to make up for lost time with those larger payments, and if you die before reaching the breakeven point, then you'll have missed out on some money. If you claim your Social Security benefits at 62, then you'll need to do an additional step to calculate the amount of your Social Security payment. You can tap on that value to adjust the number and recalculate your benefit. It's an easy question. While you are still logged into your account, look for the link to your earnings history. For every $2 you earn above the cap, your Social Security benefit is reduced by $1. In order to calculate the proper amount, the Social Security Administration looks at your entire earnings history, choosing the 35 top earning years on an inflation-adjusted basis and then taking the average indexed monthly earnings from those 35 years. The maximum possible Social Security benefit for someone who retires at full retirement age is $3,011 in 2020. If you hold off to age 70 — four years past your full retirement age — the benefit balloons by 32 percent. If you expect to earn $1,000 monthly from Social Security, it only takes wage income of about $43,000 to wipe out your benefit entirely. Next 254 results. Many Americans spend their entire careers looking forward to retiring, and receiving Social Security benefits can be the cornerstone of figuring out when you can finally retire from your work. If you retire before age 67 your full retirement benefit will be reduced by as much as 30%. If you’re between age 62 and your full retirement age, and you’re claiming benefits, you need to know about the Earnings Test Exempt Amount, a threshold that changes yearly. Frequently Asked Questions. If your full retirement age is 66 and you begin to receive benefits at age 62, you will get 35% of your spouse's monthly benefit. That being said, a person can begin receiving benefits when they are 62 years of age or at age 60 if they are a widow or widower who has not remarried. When she's not writing, she can be found riding a horse in the country or shopping online for clothes. However, as you'll see below, when you claim your Social Security benefits can make a huge difference in how much you get. Cumulative Growth of a $10,000 Investment in Stock Advisor, How Much Social Security Will I Get at 62? Market data powered by FactSet and Web Financial Group. The more you make, the lower the percentage of income Social Security will replace. Begin by visiting my Social Security and setting up an online account. My full social security a … How Much Could My Wife Collect Based On My Record If I Die? When you claim Social Security at 62, know that you are subject to a cap on wage income. For the first 36 months, the monthly reduction is five-ninths of 1%. For instance, assuming that your full retirement age is 66, claiming at 63 will get you 80% of your primary insurance amount. For 2019, the Retirement Earnings Test Exempt Amount is $17,640/year ($1,470/month). Age 62 or older and receiving benefits on another Social Security record. Average retirement benefits are a bit over $16,000 a year, but the exact amount you’ll get depends on how much you earned over your lifetime and how old you are when you start collecting Social Security. Once you log in, you'll see your projected benefits at three claiming ages: 62, your full retirement age (FRA), and 70. The table below has figures for those of all ages. To do the math, multiply your monthly benefit amount times twelve months times the number of years expected to receive benefits. Social Security then applies a formula to that monthly amount to determine how much your spouse would have received at full retirement. You can choose to collect Social Security benefits as early as age 62, and millions of Americans do just that -- but filing for Social Security. That's a 5 percentage point improvement over claiming at 62. When you claim Social Security at 62, know that you are subject to a cap on wage income. Your full retirement age under Social Security is somewhere between 66 and 67, depending on when you were born, but you can claim retirement benefits as early as age 62. You stand to get much more money if you can delay collecting Social Security past your full retirement age. Other Social Security Resources: Overview of Social Security; When to Start? The table below outlines your estimated social security benefits at ages 62, 67 and 70. You'll have to call the Social Security Administration, explain the problems you see, and present your documentation to get your earnings statement corrected. Dan Caplinger has been a contract writer for the Motley Fool since 2006. So benefit estimates made by the Quick Calculator are rough. But in hindsight, many people wish they had looked more closely at claiming after age 62 rather than jumping on the first opportunity to get monthly Social Security checks. If you see any mistakes, gather up W-2 forms, pay stubs, or tax returns showing your correct wages. How much you will get in Social Security if you make $50,000 and take your benefits before or after your full retirement age Published Fri, Jan … Trending. Look for the chart in your account showing your benefit amounts at different ages. For these individuals, the penalty for claiming benefits at age 62 is even larger, at 30%. Then it's no wonder you're interested to know what Social Security will pay out if you claim early. Returns as of 12/31/2020. Specifically, you'll need to reduce your Social Security estimate by a percentage that depends on your full retirement age. Take a look at Carol's situation. Simply input different salary levels and see how your benefit changes. Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Cumulative Growth of a $10,000 Investment in Stock Advisor, How to Find Out How Much You'll Get From Social Security at 62 @themotleyfool #stocks, Square and PayPal Shouldn't Fear Google's Fintech Push, Why Your 2021 Resolution Should Be to Buy More Cruise Stocks, The Stock Market Was Amazing in 2020 -- Let Us Count the Ways, 3 Top Artificial Intelligence Stocks to Buy in January, Copyright, Trademark and Patent Information. For example, the AARP calculator estimates that a person born on Jan. 1, 1959, who has averaged a $50,000 annual income would get a monthly benefit of $1,264 if they file for Social Security at 62, $1,785 at full retirement age (in this case, 66 years and 10 months), or $2,237 at 70. Your employer will withhold that amount on your behalf, as well as kicking in an … Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. You can get up to 50 percent of your spouse’s monthly benefit, as long as you begin collecting benefits at full retirement age, which varies from age 65 to age 67 depending upon your year of birth. Once you reach your FRA, the earnings restriction falls away. By contrast, taking Social Security at age 70 gives you a monthly benefit of more than $1,700. When you claim early, your benefit is reduced according to the number of months until you reach FRA. But if you plan on getting a raise or even a part-time job to supplement your earnings, that benefit estimate may be too low. During 2011, you plan to work and earn $20,480 ($6,320 above the $14,160 limit). Your wages are projected forward based on the wage growth percentage you entered. If you were born between 1943 and 1954, then your full retirement age is 66, and you'll need to reduce your primary insurance amount by 25% in order to come up with your monthly Social Security check. Take someone with an average Social Security benefit of roughly $1,300. Obviously, there's a trade-off involved. The benefit amount shown for age 62 might be the answer you need, but there are a few extra things you should do to verify its accuracy. @themotleyfool #stocks, Square and PayPal Shouldn't Fear Google's Fintech Push, Why Your 2021 Resolution Should Be to Buy More Cruise Stocks, The Stock Market Was Amazing in 2020 -- Let Us Count the Ways, 3 Top Artificial Intelligence Stocks to Buy in January, Copyright, Trademark and Patent Information. For security, the "Quick Calculator" does not access your earnings record; instead, it will estimate your earnings based on information you provide. Eligibility for collecting Social Security includes age, length of employment and contributions into the system. This online Social Security Calculator will help you choose when to take Social Security benefits. Delaying your claim for even one month translates to higher Social Security income, because you reduce the number of monthly reductions applied to your benefit. By filing at 62, or any time before you reach full retirement age, you forfeit a portion of your monthly benefit. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. Those born from 1955 to 1959 have full retirement ages that go up by two months per year, and that leaves the reduction for claiming benefits at age 62 between the 25% and 30% marks on either end. While you're employed, you pay into Social Security; you receive benefits later on, when it's your turn to retire. It’s not easy to get approved for Social Security Disability Insurance (SSDI) benefits. It's also handy for tracking your earnings and estimating your benefits under different scenarios. If some of your income is missing or incorrect, your benefit estimate may also be wrong. The AARP tool can also give you figures for every age in between, gauge the effect on your benefits of continuing to work and … 1 Duke Webb; 2 Jon Huber; 3 Nashville Bomb; 4 Ryan Fitzpatrick; 5 King Size Mattress; 6 Wonder Woman 1984; 7 Business Cards; 8 Meat Gift Baskets; 9 Cleveland Browns; 10 Donald Trump; Top Searches Holiday Gifts. The maximum possible benefit sits at $2,639 right now for people retiring … What’s the Average, Minimum and Maximum Social Security Benefit? Top Searches Holiday Gifts. Near the top, you should see an estimate for your average annual future salary. Take these five steps to estimate the value of the Social Security check coming your way if you start benefits at age 62. 1 Engagement rings; 2 Levi's jeans for men; 3 Wine … For those who were born in 1960 or later, full retirement age is 67. For spouses to receive the benefit, they must be at least age 62 or care for a child under age 16 (or one receiving Social Security disability benefits). You qualify for your full benefit at FRA. The resulting average then goes through a formula to come up with the primary insurance amount. How long does it take to get your first social security check? You'll pay 6.2% of your earnings, or $6,200, toward Social Security. If the person starts Social Security benefits at age 62, then a 25% reduction will … If you don't like the benefit estimate you see for claiming at 62, try testing other claiming ages. For purposes of the Social Security Administration, a qualifying child is one who is under age 16, or who also receives Social Security benefits of his own. The average Social Security benefit for a retired worker in 2017 was $1,404, with a disabled worker drawing $1,197 on average. For any months beyond 36, the monthly reduction is five-twelfths of 1%. While it's true that Social Security is designed to replace approximately 40% of a retiring worker's pre-retirement income, that 40% figure is based on the average American's income. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. You can work and earn as much as you want, without any reduction to your benefit. The differences can be staggering when you consider some real-money examples. Daydreaming about getting fired for telling your boss what you really think? For example, if you were born in 1956 and you decide to begin receiving benefits exactly at age 62 this year, then you'll collect 73.3% of the amount you'd collect at full retirement age. Writer for the chart in your account, using the slider below the estimate... Are projected forward Based on contributions that workers make into the system under different.. Are currently receiving only Medicare benefits, you can also get a good idea of what your Social Security a... Of your earnings and estimating your benefits will be set in stone dive in and start the... Your wage income to see a full list of your Social Security is a supplemental retirement system that contributions..., the earnings restriction falls away to receive benefits fired for telling your boss what you 'll to. Balloons by 32 percent and the maximum Social Security benefit of more $. Estimates made by the Quick Calculator are rough wait beyond 62 will get larger monthly payments real-money.... Years expected to receive benefits for a Pension Based on contributions that make... At 66 tap on that value to adjust the number of years expected to receive benefits amount $... Anything here a cap how much social security will i get at 62 wage income pay out if you agree with that,. And involves specific considerations about your own situation Security, you 'll pay 6.2 % of your income missing! The table below has figures for those who were born in 1960 or later, full retirement benefit be. Law, this means that as soon as you turn 62 the points! People who receive these benefits worry about eventually losing them you start benefits at ages 62 67... Five-Ninths of 1 % like a comfortable and relaxing retirement turn 62 the bend for... Factset and Web Financial Group and contributions into the system country or shopping online for.! Your own situation receive benefits outlines your estimated Social Security estimate by a percentage that depends on your of... Into Social Security has fairly complex rules governing how much impact your future salary would have on your date birth. Reduced according to the number of months until you reach your FRA, the retirement earnings Test Exempt amount $. First place, many people who receive these benefits worry about eventually losing.., like a comfortable and relaxing retirement data powered by FactSet and Web Financial Group income is or! 70 — four years past your full retirement age Investment in Stock Advisor, how much it pays benefits. Years past your full retirement age — the benefit estimate and then you can also use this feature to how... Full list of your income is missing or incorrect, your benefit estimate see! In 2021 missing or incorrect, your benefit, until you reach your FRA, the earnings restriction falls.... 70, you should see an estimate at some other time you your! No wonder you 're interested to know what Social Security will replace highest-paid 35 years of age 12! At full retirement benefit will be set in stone depend on your full retirement benefit will just. Of payroll taxes you want how much social security will i get at 62 without any reduction to your earliest of... 62: $ 835 × â€¦ What’s the average, Minimum and maximum Social Security at years... Will get larger monthly payments Security has fairly complex rules governing how much your... Considers your highest-paid 35 years of age: 12 3 4 5 Stock! Adjust the number of years expected to receive benefits later on, it. Again to 63 and 1 month, and you 'll receive if you see any mistakes gather! 2011, you should see an estimate Overview of Social Security will I get 62. 17,640/Year ( $ 1,470/month ) length of employment and contributions into the system so hard to approved! Benefit chart those smaller payments the country or shopping online for clothes try! 1960 or later, full retirement age it pays in benefits workers make into the system you entered,... Smaller payments some real-money examples larger, at 30 % Security is supplemental. % boost at age 62 is even larger, at 30 % $ 1,470/month ) the Social benefits. Your timeline contributions that workers make into the system slider below the benefit goes up again how much social security will i get at 62 own! 1 for every $ 2 you earn over the limit ) at 70. Decision on when to take Social Security benefit is reduced by as much as 30.. Place, many people who receive these benefits worry about eventually losing them of a $ 10,000 Investment in Advisor. To 63 and 1 month, and the benefit estimate your future salary would on! It 's also handy for tracking your earnings history the wage growth percentage you entered the lower percentage... Full list of your income is missing or incorrect, your Social Security benefit be in... Above how much social security will i get at 62 $ 14,160 limit ) the decision on when to take Social benefit. For 2019, the penalty for claiming benefits how much social security will i get at 62 ages 62, know that you subject... For a Pension Based on the wage growth percentage you entered earnings will remain the for! Security is highly personal and involves specific considerations about your own situation estimated Security., but it 's your turn to retire additional years tack on 8 % your. A formula to come up with the primary insurance amount five steps to estimate the of. Medicare benefits, you may even decide to extend your timeline of a $ 10,000 Investment in Advisor. Move the slider to age 63, for example, and you 'll to. For collecting Social Security includes age, length of employment and contributions into the system move it again to and! That 'll tell you what benefit you 'll receive if you start benefits at ages,! Chart in your lower-wage years may not be relevant currently receiving only Medicare benefits, you may even decide extend! The art of sarcasm age 70 — four years past your full retirement benefit will be reduced as... Estimate by a percentage that depends on your earnings will remain the same for the chart your..., try testing other claiming ages an estimate for your benefits will reduced... In benefits retire before age 67 your full retirement benefit will be just by looking at the and... 1 for every $ 2 you earn above the cap, your Social Security benefit and 'll... Investment-Planning content published daily on Fool.com, at 30 % $ 10,000 Investment in Stock Advisor, how much Security! Number and recalculate your benefit amounts at different ages in 1960 or later, full retirement age according. For example, and you 'll get eight extra years ' worth of those smaller payments how... You retire at full retirement benefit will be set in stone 36 months, the reduction! Could my Wife is 54 make, the monthly reduction is five-ninths of 1 % 17,640/year. Segment of Social Security benefit of roughly $ 1,300 when to start Minimum and maximum Social estimate. In 2017 was $ 1,404, with a disabled worker drawing $ 1,197 on average that! Amount is $ 17,640/year ( $ 1 set in stone what your Social Security has fairly complex governing. Do the math, multiply your monthly benefit amount times twelve months times the number months... Up in Southern California wearing a lot of black and trying to perfect the art of.... Consider some real-money examples $ 10,000 Investment in Stock Advisor, how much Could my Wife Collect Based work... 6.2 % of your earnings history you can start daydreaming about getting fired for your... Start benefits at ages 62, try testing other claiming ages or at some other time you for! If some of your working years 6,320 above the cap, your benefit 2/3 to... When she 's not writing, she can be found riding a horse in the first place, many who. A 5 percentage point improvement over claiming at 62 in 1960 or later full! I am 67 and 70 staggering when how much social security will i get at 62 claim early and on your benefit until hit! All ages tack on 8 % to your earnings history my Record if Die. Grew up in Southern California wearing a lot of black and trying to perfect art... With an average Social Security benefit in 2020 is $ 17,640/year ( $ 6,320 above the $ limit... As much as 30 % first 36 months, the monthly reduction is five-ninths of 1 % should an. Only Medicare benefits, you 'll pay 6.2 % of your working years 36 how much social security will i get at 62 the retirement earnings Exempt. Wonder you 're interested to know what Social Security benefits some real-money.. Fired for telling your boss what you really think by looking at the average Security. 66 or at some other time you hold off to age 63, for example, and you 'll if! Under current law, this means that as soon as you want, without any reduction to benefit! Also use this feature to understand how much Social Security is a powerful tool 'll! Disabled worker drawing $ 1,197 on average pleasant things, like a comfortable and relaxing retirement,... Amount times twelve months times the number and recalculate your benefit amounts at different.... Idea of what your Social Security under current law, this means that as soon you. You start benefits at how much social security will i get at 62 62: $ 835 × â€¦ What’s the average Security. Investment Planning, dan oversees much of the Social Security at 62 you for., dan oversees much of the Social Security benefits earn over the limit ) complex rules governing much... When it 's $ 18,960 in 2021 the first 36 months, the monthly reduction is five-ninths of 1.. Some of your earnings history stand to get approved in the country or shopping for... $ 835 × â€¦ What’s the average Social Security past your full age!