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What is the average retirement age for people who claim Social Security benefits?

Shanelle Rivallant

The average retirement age for people who claim Social Security benefits varies greatly depending on a number of factors, including family history, health, occupation, income, and personal circumstances.

According to the Social Security Administration, the earliest age you can start receiving Social Security retirement benefits is 62 years old. However, your payment amount will be lower than if you wait until your full retirement age, which is between 66 and 67 years old depending on the year you were born. If you decide to delay receiving benefits beyond your full retirement age, you can increase your payment amount by up to 8% per year until age 70.

Despite these options and the fact that many American workers would like to retire earlier, the average retirement age for people who claim Social Security benefits is 62 years old. This is not necessarily because workers are physically or mentally ready to retire at this age, but rather because they may not have sufficient savings or pension plans to support a longer retirement. According to a recent survey, over half of American workers have less than $25,000 in retirement savings, and a significant number have nothing saved at all.

In addition to financial concerns, health issues or disabilities may also force workers to retire earlier than anticipated. About one-third of Social Security disability beneficiaries are under age 50, indicating significant health challenges that prevent them from working. These individuals may begin receiving Social Security retirement benefits before age 62 if they qualify for disability benefits or have a qualifying medical condition.

On the other hand, some workers choose to work beyond their full retirement age or delay receiving benefits until age 70 in order to maximize their payment amounts. This trend has increased in recent years as people are living longer and healthier lives, and have more flexibility in their careers and personal lives.

Ultimately, the average retirement age for people who claim Social Security benefits will continue to fluctuate based on a range of factors. It is important for individuals to understand the various options and requirements so they can make informed decisions about when to retire and how to manage their finances for the long-term.