For millions of Americans, Social Security serves as the backbone of their retirement income. However, a surprising number of beneficiaries are unaware of a powerful way to significantly increase their monthly payments—by adjusting the age at which they begin claiming benefits. In some cases, this adjustment could lead to an increase of over $700 per month.
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The Secret to $700+ More Each Month
Choosing when to start collecting Social Security is one of the most impactful financial decisions you can make for retirement. The Social Security system allows retirees to begin receiving benefits as early as age 62, but there’s a catch—starting early permanently reduces your monthly payments.
Conversely, delaying your benefits until age 70 can result in a substantial boost, thanks to delayed retirement credits. These credits increase your benefits by 8% per year after your full retirement age (FRA), which typically ranges between 66 and 67 depending on your birth year.
Here’s how the numbers break down:
- At age 62 in 2023: You could receive $1,298 per month.
- At age 70 in 2023: Your monthly payment could jump to $2,038.
That’s a $740 difference every month, or nearly $9,000 more annually.
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Should You Delay Benefits?
While waiting until age 70 to claim benefits is a smart financial move for many, it’s not the best choice for everyone. Consider these factors:
- Health and Longevity: If you’re in good health and have a longer life expectancy, delaying benefits can pay off.
- Financial Need: If you have sufficient savings or other sources of income, you might benefit from waiting.
- Lifestyle Preferences: If you plan to enjoy your retirement while you’re still active, starting earlier might make sense.
According to a 2022 National Bureau of Economic Research study, 99.4% of retirees could significantly increase their lifetime income by delaying benefits. However, individual circumstances and personal goals must also be taken into account.
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Social Security Payment Schedule for January 2025
In January 2025, retirees can expect their Social Security checks to arrive on the following dates:
- January 3rd: Retirees who began claiming benefits before May 1997.
- January 8th: Retirees born between the 1st and the 10th of the month.
- January 15th: Retirees born between the 11th and the 20th of the month.
- January 22nd: Retirees born between the 21st and the 31st of the month.
These payments will reflect the 2.5% cost of living adjustment (COLA) announced in October 2024, designed to help beneficiaries keep pace with inflation.
What Will Retirees Receive With the New COLA?
The 2.5% COLA increase means higher monthly checks for millions of retirees. Here’s a breakdown of the new payment amounts:
| Retirement Age | Previous Monthly Benefit | New Benefit (2025) | Extra Income |
|---|---|---|---|
| On Average | $1,900 | $1,948 | $48 |
| Age 62 | $2,710 | $2,778 | $68 |
| Age 67 | $3,822 | $3,918 | $96 |
| Age 70 | $4,873 | $4,995 | $122 |
Final Tips for Retirees
If your Social Security payment doesn’t arrive on the scheduled date, wait at least three business days before contacting the SSA. Additionally, you can access your My Social Security Account for up-to-date information about your monthly benefits.
Maximizing your Social Security income can make a significant difference in your retirement lifestyle. With strategic planning and careful consideration of your financial needs, you can make the most of your benefits and enjoy a more secure future.
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