"Understanding the Impact of Social Security Benefits at Different Ages"

Social Security benefits are a crucial income source for retirees, with 22.7 million people aged 65 and over lifted above the federal poverty line annually. The benefits are calculated using a formula based on work history, earnings, full retirement age, and claiming age, with claiming age having the most significant impact on monthly payouts. While claiming at 62 offers immediate access to benefits, waiting until 70 can increase monthly payouts by 24% to 32%. Research suggests that waiting to claim benefits, ideally until age 70, can result in the highest lifetime benefit for most retirees, although individual circumstances should also be considered.