Understanding Full Retirement Age and Benefit Reductions
Full retirement age is the age at which you are eligible to receive full Social Security retirement benefits. This age varies depending on your year of birth. For individuals born in 1960 or later, the full retirement age is 67.
Benefits of Delaying Retirement
If you delay taking your Social Security benefits past your full retirement age, you will be eligible for delayed retirement credits. These credits will increase your monthly benefit by a certain percentage for each month you delay taking benefits. This can be a significant advantage, especially if you expect to live a long life.
Disadvantages of Early Retirement
If you start receiving Social Security benefits before your full retirement age, your benefits will be reduced. The amount of the reduction depends on how many months before your full retirement age you start taking benefits. For example, if you start taking benefits at age 62, your benefits will be reduced by 25%.
Making the Decision
The decision of when to start taking Social Security benefits is a personal one. There are many factors to consider, including your health, life expectancy, financial needs, and other sources of income. It is important to weigh the advantages and disadvantages of early and late retirement before making a decision.
Additional Considerations
- If you decide to delay your benefits until after age 65, you should still apply for Medicare benefits within three months of your 65th birthday. If you wait longer, your Medicare medical insurance (Part B) and prescription drug coverage (Part D) may cost you more money.
- If you qualify for benefits as a Survivor, your full retirement age may be different.
Understanding full retirement age and the implications of early or late retirement is crucial for making informed decisions about your Social Security benefits. By carefully considering your individual circumstances and weighing the advantages and disadvantages, you can choose the best option for your financial future.
Frequently Asked Questions
What is the full retirement age for someone born in 1959?
The full retirement age for someone born in 1959 is 66 and 10 months.
How much will my Social Security benefits be reduced if I start taking them at age 62?
If you start taking Social Security benefits at age 62, your benefits will be reduced by 25%.
Can I delay taking my Social Security benefits past age 70?
Yes, you can delay taking your Social Security benefits past age 70. Your benefits will continue to increase until you reach age 70, and they will not be reduced if you start taking them after that age.
What is the maximum amount of Social Security benefits I can receive?
The maximum amount of Social Security benefits you can receive depends on your earnings history. For someone retiring in 2023, the maximum monthly benefit is $4,555.
Where can I find more information about Social Security retirement benefits?
You can find more information about Social Security retirement benefits on the Social Security Administration website at www.ssa.gov.
Additional Resources
- Social Security Retirement Benefits: https://www.ssa.gov/benefits/retirement/
- Benefits Planner: Retirement: https://www.ssa.gov/benefits/retirement/planner/
- Life Expectancy: https://www.ssa.gov/oact/population/longevity.html
- Retirement Age Calculator: https://www.ssa.gov/benefits/retirement/planner/agereduction.html
- Benefits For The Surviving Spouse By Year Of Birth: https://www.ssa.gov/benefits/survivors/
Disclaimer
The information provided in this article is for general informational purposes only and should not be considered as financial advice. It is essential to consult with a qualified financial advisor to discuss your specific financial situation and retirement planning needs.
Social Security retirement benefits can begin as early as age 62, but the amount you receive will be less than the total amount of retirement benefits.
Examples of the percentage of your full retirement benefit amount that you and your spouse would receive from age 62 to your full retirement age are shown in the chart below.
When you’re ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.
Those who reach age 62 in 2024 will have reached the current full retirement age of 67 years old. (The age for Medicare eligibility remains at 65. ).
What age you should start collecting social security benefits?
FAQ
At what age do you get 100% of your Social Security?
Is it better to take Social Security at 62 or 67?
At what age can you make unlimited money and draw Social Security?
Can you collect Social Security at 66 and still work full time?
What is a full retirement age for Social Security?
Full retirement age for Social Security is the age at which a person is entitled to 100% of their monthly Social Security retirement benefit. It ranges from 66 to 67. The Social Security Administration determines a person’s full retirement age based on their birth year.
When can I start receiving Social Security benefits?
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
How old do you have to be to claim social security?
It ranges from 66 to 67. The Social Security Administration determines a person’s full retirement age based on their birth year. The advantage of waiting until you reach your full retirement age to claim Social Security is that you can collect your entire Social Security retirement benefit.
When does Social Security retire?
The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later. The earliest a person can start receiving Social Security retirement benefits will remain at age 62.