People born between 1960 and 1970 have officially reached the age window to begin claiming Social Security retirement benefits. While early retirement becomes an option at age 62, the Social Security Administration (SSA) has set the full retirement age (FRA) for this group at 67. Choosing to begin benefits before FRA results in a permanent reduction in monthly payments.
For example, someone entitled to $2,000 at age 67 would receive only $1,400 per month if they apply at 62—a 30% cut to account for the longer time the SSA expects to make payments.
Maximum and Average Benefits in 2025
In 2025, the average Social Security payment is $1,976 per month—a 2.5% increase from last year. High earners who consistently contributed up to the taxable income ceiling ($176,100 in 2025) for 35 years could receive as much as $4,018 monthly if they claim benefits at age 67.
Most beneficiaries, however, receive between $1,000 and $3,800, depending on their earnings history and years of contributions. The SSA calculates payments based on a worker’s highest 35 years of income, adjusted for inflation.
The Case for Delayed Benefits
Delaying retirement past the FRA can significantly increase payments. The SSA offers an 8% increase per year for those who wait beyond age 67. For instance, a retiree eligible for $2,000 per month at age 67 would receive $2,480 if they delay until age 70. This increase becomes permanent once payments begin.
Who Qualifies?
To qualify for retirement benefits, individuals must have earned 40 work credits—roughly equivalent to 10 years of work. In 2025, each credit requires $1,810 in reported income. Only formal, taxable income counts; unreported jobs and under-the-table earnings are excluded.
Self-employed workers must also pay the full 12.4% Social Security tax to receive credit toward their retirement.
Earnings After FRA
Working after reaching the FRA does not reduce benefits and can even raise them if current income surpasses previous years. The SSA reviews income records annually and recalculates benefits when higher earnings are found.
Inflation and COLA Adjustments
In 2025, more than 68 million Americans receive Social Security. This year’s 2.5% Cost-of-Living Adjustment (COLA) added about $49 to the average monthly payment. However, ongoing inflation could limit the impact of this boost. COLAs are determined annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Summary: What to Expect at Different Ages
- Age 62: Early claim results in a 30% reduction — $1,400 monthly on a $2,000 FRA benefit.
- Age 65: 86.7% of FRA benefit — $1,734 per month.
- Age 67 (FRA): Full benefit — $2,000 per month.
- Age 70: 124% of FRA benefit — $2,480 per month.
As millions approach retirement, understanding how timing and earnings affect Social Security benefits is more critical than ever. Planning wisely can mean the difference between a modest income and a more secure retirement.