Did you know your Social Security benefits can vary greatly depending on when you start claiming? In 2025, the maximum monthly benefit at age 62 is $2,831, but if you wait until age 70, that amount can grow to $5,108 per month.
Why Benefits Change Based on When You Claim
The difference comes down to two main factors:
- Claiming before full retirement age (FRA) means your monthly benefits are permanently reduced.
- Claiming after FRA earns you deferred retirement credits, which increase your monthly benefit.
How Deferred Retirement Credits Work
For each year you delay claiming past your full retirement age, your benefit grows by about 8% annually. This increase continues until age 70, which explains the much higher benefit at that age.
Your Primary Insurance Amount (PIA) is the base figure used at full retirement age. It is calculated using your average indexed monthly earnings (AIME) from your 35 highest-earning years, adjusted for inflation.
Early Claiming Reduces Your Benefits
If your FRA is 66 years and 10 months and you claim at 62, that means you are taking benefits 58 months early. The reduction is calculated as:
- 5/9 of 1% for the first 36 months
- 5/12 of 1% for the remaining 22 months
This results in a significant permanent decrease in your monthly payment.
How to Maximize Your Social Security Benefits
Waiting until age 70 to claim eliminates reductions and adds the maximum deferred retirement credits. Each month of delay increases your benefit by about 0.67% (two-thirds of 1%), accumulating to 8% yearly until 70.
Who Can Reach These Maximum Benefit Amounts?
The maximum figures ($2,831 at 62 and $5,108 at 70) assume you worked 35 years earning at or above the maximum taxable earnings limit. In 2025, this limit is $176,100. Less than 6% of taxpayers earn at this level.
Why Delaying Benefits Could Pay Off
Studies show delaying Social Security until age 70 can maximize lifetime income, especially if you live beyond 80-82 years. The higher monthly payments help make up for the years without Social Security income.
Important Social Security Payment Dates for June 2025
If you rely on Social Security payments, here’s what you need to know about June 2025:
- Normally, payments go out on the 1st of each month, but since June 1, 2025 is a Sunday, your payment will arrive early on Friday, May 30.
- This means you won’t get another payment in June, so plan your budget accordingly.
Payment Schedule by Birth Date for June 2025
- Birthdays between the 1st and 10th: Payment on Wednesday, June 11
- Birthdays between the 11th and 20th: Payment on Tuesday, June 18 (moved up one day due to Juneteenth)
- Birthdays between the 21st and 31st: Payment on Wednesday, June 25
Special Note for Long-Term Recipients
If you began receiving benefits before May 1997, your payment date is Tuesday, June 3, regardless of birthday.
