A $5,181 Monthly Social Security Benefit vs. $1,200: How Claiming Age and Earnings Create the Gap

A $1,386 base Social Security benefit claimed at age 62 results in a monthly payment of about $1,200. The same benefit claimed at age 70, with delayed retirement credits, rises to $1,714. The difference between these two outcomes is $480 per month for life. That $480 is the result of waiting five years past the full retirement age of 67, which adds 24% to the base benefit. A worker with a $2,000 Average Indexed Monthly Earnings (AIME) receives a base benefit of about $1,386 at full retirement age. Claiming at 62 instead of 67 permanently reduces that base by 30%. Claiming at 70 instead of 67 adds 24% to the base benefit. The highest-earning worker with a $2,000 AIME and claiming at 70 receives a monthly benefit of $5,181. The difference between claiming at 62 and 70 on a $2,000 AIME is $480 per month for life.