Millions of Americans collect Social Security benefits each month and believe that monthly amount is the most important thing.
But what about your lifetime benefit?
This is your total benefit you’ll get over the course of your life when you collect them.
Understanding how Social Security works
Your benefits are calculated by the Social Security Administration.
They keep track of what you’ve paid into Social Security over the course of your working life.
The SSA takes your 35 highest earning years and calculates the average to figure out your payment.
What you get depends on the age you retire as well.
You can retire as early as 62, but run the risk of losing up to 30% of your benefits each month.
If you wait to retire and claim benefits at your full retirement age you’ll get your full benefits.
By waiting until age 70 you can see 132% of your full benefits.
Boost your Social Security benefits to $70,000
The average check each month for Social Security recipients is around $1,657.
By claiming and receiving that amount at 62 you could see $458,436 in all, but your benefit shrinks the earlier you collect.
By delaying until age 70, you could see an average of $2,943 per month.
That’s 8 less years of checks, bringing your lifetime benefit to $529,740 for making it to age 85.
What it comes down to is life expectancy.
If you aren’t in good health, and only live to 75, you run the risk of losing out on a greater sum overall.
By waiting until 70 and making it to 85, you can see $71,304 more overall.
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