If you start receiving Social Security benefits at age 63, how much will your monthly deposit be in 2025?
For many Americans, Social Security is a cornerstone of retirement planning, and the decision about when to begin taking benefits can significantly shape long term financial security. In 2025, those who consider claiming Social Security at age 63 face a choice that provides earlier access to monthly payments but comes with a reduction compared to waiting until full retirement age.
Understanding how this reduction is calculated, along with examples of what those monthly checks might look like, helps clarify the tradeoff for individuals making this decision.
The Social Security Administration bases benefits on what is known as the primary insurance amount, or PIA. This is the figure you would receive if you waited until full retirement age, which is 67 for anyone born in 1960 or later.
Claiming before that point reduces the monthly benefit, while waiting past it increases the payout. At 63, a retiree is filing four years early, and that results in a 25 percent reduction from the full benefit. The agency applies the cut by subtracting five ninths of one percent for each of the first 36 months prior to full retirement age and five twelfths of one percent for every additional month.
To put the math into practical terms, someone with a PIA of $2,000 would see a reduction of $500, leaving them with about $1,500 per month beginning at age 63. If the PIA were $1,800, the reduced monthly deposit would come out to roughly $1,350.
For those with higher earning histories, a PIA of $2,500 would translate into about $1,875 per month, while a $3,000 PIA would mean around $2,250 at 63. These amounts illustrate how the reduction works across income levels and highlight that the decision to file early is a personal balance between immediate financial need and the long term advantage of waiting.
The tradeoff between early access and larger checks
Choosing to begin Social Security benefits at 63 has some advantages. It allows individuals to access money sooner, which can be important for those who leave the workforce earlier than expected or who need supplemental income to manage expenses. For many, the certainty of having a monthly deposit outweighs the downside of smaller checks. Retirees who may not expect to live into their eighties or nineties sometimes prefer claiming earlier, ensuring they receive more years of payments, even if each one is smaller.
On the other hand, waiting until 67 or even delaying past full retirement age to 70 can increase benefits substantially. At 70, beneficiaries receive delayed retirement credits that boost the monthly amount by up to 24 percent compared with waiting until 67.
This can create a significant income difference later in life, when health care costs and other expenses often rise. The Social Security Administration itself emphasizes that there is no single best age to claim; the right time depends on individual circumstances, health, and other sources of retirement income.
Another factor to consider is cost of living adjustments, known as COLAs. Every year, Social Security benefits are adjusted to keep pace with inflation, which means that even reduced payments grow over time. For someone claiming at 63 in 2025, the first check might feel modest compared to waiting, but the COLAs will apply annually, helping the benefit keep up with rising prices. Recent increases, including the 3.2 percent boost in 2024, demonstrate how inflation can steadily lift monthly deposits as the years progress.