When it comes to claiming Social Security benefits upon retirement, several factors are taken into consideration.

Firstly, individuals can apply for their retirement benefits between the ages of 62 and 70. The payment amount is based on their lifetime earnings. The average indexed monthly earnings from the 35 highest-earning years after the age of 21 are used to determine the benefit amount at full retirement age, which can range from 66 to 70.

The Social Security benefits formula for 2023 works as follows: The first $1,115 of average indexed monthly earnings is multiplied by 90%, any amount between $1,115 and $6,721 is multiplied by 32%, and any amount above $6,721 is multiplied by 15%.

Moreover, the calculation of retirement benefits is illustrated through examples, considering workers retiring in the future year of 2024.

Ultimately, an individual's Social Security benefit is determined by their lifetime earnings and the age at which they retire and begin receiving payments. Hence, it's important to carefully assess these factors and plan accordingly for claiming Social Security benefits.

Additionally, the Social Security Administration offers online calculators to help estimate retirement benefits based on one's earnings record.

Sources

Plan for retirement - SSABenefits Planner: Retirement | Retirement Age and Benefit Reduction - SSA[PDF] Your Retirement Benefit: How It's figured - SSA[PDF] How You Become Eligible For Benefits - SSAHow Retirement Benefits Are Calculated By Social Security - AARPHow Social Security Benefits Are Calculated - Bankrate

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