This video explains how to determine the amount of Social Security benefits one can receive at different ages. It uses an example of an individual whose full retirement age is 67, with a primary insurance amount (monthly benefit) of $3,000. 

- **Early Filing:** If the individual files at age 62 (5 years before full retirement age), they will receive 70% of their primary insurance amount, which amounts to $2,100 per month.
- **Delayed Filing (Before Full Retirement Age):** For every month delayed before reaching the full retirement age of 67, the benefit increases on a pro-rated basis. This means that delaying even by a month contributes to a higher benefit. The benefit increases incrementally, reaching 75%, 80%, 86.7%, and 93.3% at various points before age 67.
- **Filing at Full Retirement Age:** Filing at the full retirement age of 67 results in receiving 100% of the primary insurance amount, which is $3,000 per month.
- **Delayed Filing (Past Full Retirement Age):** For every full year delayed beyond the full retirement age, an 8% simple interest increase is applied to the benefit. For instance, filing at age 68 would result in receiving 108% of the primary insurance amount, totaling $3,240 per month. This continues to increase, reaching 116% at age 69, and maxing out at age 70. At age 70, the individual receives 124% of their primary insurance amount, which is $3,720 per month.

Trevor Phibbs, CFP®

Here is the easiest way to determine how much of your Social Security benefit you will receive at each age.

Now, let's say that this person has a full retirement age of 67, at which point in time their primary insurance amount or their monthly benefit is $3,000 per month. They will receive 100% of that if they file at age 67. But if they file early at age 62, they will only receive 70% of $3,000, or $2,100 per month.

Now, for every month that you delay filing all the way up till your full retirement age, you will receive a pr-rated increase. So, every single month counts all the way up to your full retirement age. So you can see it increases to 75%, 80%, 86.7%, and 93.3% at age 66, which is equivalent to $2,799 per month.

Now, for every full year that you delay past your full retirement age, you will receive an 8% simple interest increase. So, if you file at 68 in this scenario, you would get 108% of $3,000, or $3,240 per month. It increases to 116%, and then maxes out at age 70. So, 124% of $3,000 is $3,720 per month.

I hope that helps.

How Much Social Security Will You Really Get at 62 vs 67?

Here is the easiest way to determine how
much of your social security benefit you
will receive at each age. Now, let's say
that this person has a full retirement
age of 67, at which point in time their
primary insurance amount or their
monthly benefit is $3,000 per month.
They will receive 100% of that if they
file at age 67. But if they file early
at age 62, they will only receive 70% of
$3,000 or $2,100 per month. Now, for
every month that you delay filing all
the way up till your full retirement
age, you will receive a pr-rated
increase. So, every single month counts
all the way up to your full retirement
age. So you can see it increases to 75%
80% 86.7 and 93.3%
at age 66 which is equivalent to $2,799
per month. Now for every full year that
you delay past your full retirement age,
you will receive an 8% simple interest
increase. So, if you file at 68 in this
scenario, you would get 108%
of $3,000 or $3,240
per month. It increases to 116 and then
maxes out at age 70. So, 124% of $3,000
is $3,720
per month. I hope that helps.

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How Much Social Security Will You Really Get at 62 vs 67?

Transcription