Since the 1980s, a law has gradually raised the age at which you can start getting full Social Security benefits. If you plan to retire soon, make sure your calculations are correct.
The Bipartisan Policy Center says that in 1983, Congress passed a law that gradually raised the age from 65 to 67 at which people could get all of their Social Security benefits. The next few decades saw this change happen as Americans got closer to retirement age. The raise was meant to keep up with people living longer.
Social Security beneficiaries will have to wait until this retirement age to get 100%
The Social Security Administration says that “full retirement age” is the oldest age at which you can get full Social Security retirement payments. The month and year you reach full retirement age depend on the year you were born.
Depending on the month, people born in 1959 will be old enough to start getting all of their benefits by 2025. Based on the fact that it has been the case for most of Social Security’s history, the Center for Budget and Policy Priorities says that most Americans think 65 is the appropriate age to retire.
Officials at Social Security said that the law raised the age for people born after 1938. For people born after 1960, the retirement age went up by two months every year after that.
If you were born in 1957, for example, you could start getting full Social Security payments when you turn 66 years and 6 months old. Are you born in 1958? If so, you must be 66 years and 8 months old to get all of your benefits. It is important to know that the full retirement age for people born after 1960 is now 67.
People who get Social Security benefits can choose to start getting them before they reach full retirement age. When you turn 66, your benefits drop by about 25%, and when you turn 67, they drop by 30%.
Keep in mind, though, that you can start getting benefits when you turn 62. If you wait until you turn 70 to start getting benefits, you will get a bigger monthly payment. On the Social Security website, you can find out when you can start getting full retirement benefits and how much you can get if you retire early.
How will the new retirement age impact beneficiaries who claim benefits at 62?
Beneficiaries in the United States can usually start applying for their benefits as early as age 62. They will get a lower benefit that stays the same for as long as they are retired, but they can start making claims as soon as they turn 62.
Many older Americans choose to claim at age 62, even though it means getting a benefit that is about 30% less than their full benefit. They do this because they think it makes more sense to get more years of guaranteed retirement income, even if the amount is less, or because they have to retire sooner than they had planned.
The higher retirement age is not a new thing, but some older workers may be caught off guard by it. This is because even if you claim benefits a month before your FRA, they will still be cut, though not as quickly as when you are 62.
Also, there may be a big difference in your finances between claiming at age 62 and waiting until FRA. According to the Social Security Administration, a person who retires at FRA in 2024 could get up to $3,822 a month, but someone who retires at age 62 would only get up to $2,710.
Also See :- New IRS payment of $2,000 if your child meets these requirements by that date