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The amount of your retirement benefits depends on how much you’ve earned in your lifetime in jobs for which you’ve paid social security contributions – and the age at which you apply for them. You can apply for Social Security benefits as early as age 62, but you will only receive your full benefits if you wait to apply until full retirement age (FRA) .
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According to the Social Security Administration (SSA), if you were born between 1943 and 1954, your full retirement age is 66. $750 per month. A monthly spousal benefit of $500 would be reduced to $350.
The greater the gap between age 62 and FRA, the greater the percentage reduction in pension benefits. For those born in 1960 or later, retirement benefits are reduced by 30% and spousal benefits are reduced by 35%. This means that a retirement benefit of $1,000 would be reduced to $700 per month.
According to the SSA’s 2021 Annual Statistical Supplement, the monthly benefit amount for retired workers who apply for benefits at age 62 and earn the average wage was $1,480 per month for the single worker. The benefit amount for workers whose spouses claim benefits was $2,170 at age 62.
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Although applying to the FRA allows you to receive pension benefits for a longer period, the amount of your benefits will be significantly reduced. The SSA says that if you delay your benefits until after FRA, you will be eligible for deferred retirement credits that will increase your monthly benefit.
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