Personal Finance

The Average Senior Could Get an Extra $1,067 a Month in Social Security Benefits If They Do This

Christy Bieber

Published: February 26, 2025 11:51 am

Social Security benefits are going to help you fund your retirement, and many people rely on them for a significant portion of their income. Often, it makes sense to try to get the largest payment possible since you can count on this money lasting for life.

For the typical senior, it’s actually possible to increase benefits by as much as $1,067 per month. Retirees can do this by making a strategic choice about when to claim benefits. Here’s how. 

How can the average senior increase their monthly Social Security check?

According to the Social Security Administration, the average monthly benefit provided to retirees is $1,976. However, it’s possible to increase this amount substantially — or, in some cases, to shrink it. That’s because your benefit is affected by the age when you claim it. 

The way Social Security works is that you can start your benefits any time between age 62 and age 70. However, you are assigned a full retirement age and must claim benefits at that time to get your standard payment amount based on wages over your working life. Your FRA depends on birth year, but is 67 for anyone who was born in 1960 or later (it’s earlier if you were born earlier).

If you claim benefits a month or more before FRA, you are hit with a penalty for early filing. For each of the first 36 months before your full retirement age, the penalty reduces benefits by 5/9 of 1%. For anyone who claims more than three years ahead of their FRA, those additional months come with a penalty equal to 5/12 of 1%.

This adds up to a 6.7% annual penalty for each of the first three years and another 5% thereafter. So, someone who had an FRA of 67 and claimed five years early at 62 would face a 30% penalty. Reducing the average $1,976 benefit by 30% would lead to a monthly check of $1,383.20. 

Late claimers, on the other hand, increase their benefits. Delayed retirement credits that apply for each month you wait after FRA earn you an extra 2/3 of 1%. This adds up to an annual increase of 8%. So, someone who claims at 70 (the last age you can earn delayed retirement credits) will end up with a monthly benefit worth 24% more than their standard benefit. That means the average $1,976 monthly benefit would increase to $2,450.24. 

If you do the math, the difference between claiming at 62 and claiming at 70 is $1,067.04. So, if you want to increase your monthly Social Security by this amount, you simply have to wait to claim your benefit until you are 70 instead of starting it at 62.

Should you delay your Social Security benefits claim?

For many people, a delayed Social Security claim makes good sense. That’s because having a large guaranteed source of lifetime income can protect them later in life as their savings begin to dwindle. Plus, since people are living longer than they did when the system of early filing penalties and delayed retirement credits was devised, the odds are that a delayed claim will result in more lifetime benefits. That’s the case for around 7 in 10 retirees. 

Now, this doesn’t mean delaying is the right choice in every situation. If you are worried your savings will run out if you’re trying to live on investments alone while waiting to claim Social Security, then you should not delay. If you expect to pass away at a young age and don’t have a spouse who will rely on survivor benefits, an early claim is also smart.

A financial advisor can help you to consider your unique situation to determine what claiming age is best so you can decide if delaying to substantially increase your check is the right move for you.