The average monthly Social Security retirement benefits for a 62 year old equals $1,341.61 versus $2,148.12 for 70 year olds, according to Social Security Administration (SSA) data.
However, there’s no advantage to waiting until after 70 to claim Social Security benefits. And as it turns out, the average monthly retirement benefits for an 80 year old — $2,006.20 — are actually a little less than for 70 year olds. That’s not because the SSA reduces your benefit amounts as you age, but instead, average benefits reflect when recipients first claim benefits and how much they’ve earned over their careers.
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“[This] could be a result of workforce participants working longer, past age 65. Those that are older, in their 80s and 90s, may have retired earlier in life than generations that have followed,” said Urban Adams, wealth manager at Dynamic Wealth Advisors.
A similar dynamic plays out for upper class retirees, even though older, wealthy retirees still receive higher Social Security amounts than the average recipient — here’s how it breaks down.
Calculating Average Upper Class Social Security Benefits at Age 80
On average, 80 to 89 year olds in the 90th percentile of Social Security benefits receive $2,849 per month, according to the SSA. That’s about 47% more than the median benefits for those in the same age range.
So, by adding 47% to the average reported Social Security retirement benefits of an 80 year old — $2,006.20, as previously mentioned — that means we can estimate the average 80-year-old, upper-class retiree at the 90th percentile of Social Security benefits receives approximately $2,949 per month.
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Even though that’s almost $1,000 more per month than the average octogenarian receives, it’s still not enough for most retirees to live on, especially if you’re trying to soak up your senior years, not just skate by.
The average household expenditures for those ages 75 and older equal roughly $4,500 per month, according to the U.S. Bureau of Labor Statistics (BLS). And for those in the top-fifth income quintile, regardless of age, average spending totals nearly $12,000 per month, per the BLS.
So, while combining Social Security checks might be enough for some partnered retirees, supplementing these benefits with other sources of retirement income is often key, especially for those looking to maintain an upper-class lifestyle.
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This article originally appeared on GOBankingRates.com: How Much the Average Upper-Class Retiree Receives in Benefits at Age 80
