When Is the Age You Receive Full Social Security Benefits?
Social security is one of the many retirement plans that many Americans rely on to sustain their lifestyles. But when can you begin receiving your full Social Security benefit? The answer greatly depends on the year of your birth.
Full Retirement Age
Full retirement age, or FRA, is the period somebody qualifies for their Social Security benefits gathered from work encounters. Born 1943 or after, the FRA runs from 66 to 67 a long time ancient: Born either in 1943 or after, the FRA ranges from 66 to 67 a long time ancient:
- Born between 1943 and 1954, their whole retirement age will be 66 a long time ancient.
- The FRA for those born in 1955 is 66 a long time and 2 months.
- You're qualified for your 66 long time and 4 months full retirement age (FRA) having been born in 1956.
- A 1957-born individual has an FRA of 66 a long time and 6 months.
- Your FRA would be 66 a long time, 8 months given your birth year, 1958.
- Born in 1959, your full retirement age is 66 a long time and 10 months.
- Born either in 1960 or after, your FRA is 67.
Early Eligibility at 62
Early SS retirement allows you to start receiving Social Security retirement payments earlier than your FRA—that is, as soon as age 62. Still, should you choose to start collecting the benefits before the FRA, the issued payments will be permanently reduced by a designated percentage for every month before the FRA achievement.
For example, your benefit would be somewhat reduced by around 30% if your FRA is 67 and you decide to start benefits at 62. People may start getting their benefits as early as 62, of course; however, in this instance, you will only get a portion of what you have rightly earned and deserve until you wait for your full retirement age.
This means that should one start claiming sooner, the benefits one is expected to get are probably much less than the overall amount one should get in a lifetime. Make sure you can afford such a cut before deciding to take benefits before the scheduled date.
Delayed Retirement Credits
You also can decide to start receiving Social Security benefits after the age of FRA, or even later, which is referred to as ‘‘deferred retirement’. If you postpone your benefits, you may purchase delayed retirement credits, which will boost your future monthly benefits. This will afford you a defined benefit that can rise by 8 percent annually up to the age of 70.
Suspension of benefits leads to a substantial boost in the amount of money received monthly if the person lives long enough to go through the retirement stage. Suspending from age 67 to age 70 increases not only your monthly payment but by 24%. However, beyond 70 there is no further reward in terms of increased credit for delaying beyond 70.
Spousal and Survivor Benefits
The rules are slightly different if you are eligible for Social Security benefits based on your spouse’s or parent’s earnings, or if you are a surviving spouse or child. In other words, wives who are claiming benefits are as young as age 62 and are entitled to benefits based on their husband’s earnings records. However, if the full spousal benefit is claimed before the FRA, then the benefit will be lowered permanently.
The maximum amount of spousal benefit that can be received by either of the spouses is 50% of the other spouse’s benefit. This means that the receiving spouse’s benefits have no impact on reducing the worker’s benefit.
For survivor benefits, if the first spouse dies before collecting pensions but begins to collect before FRA, the survivor benefit depends on the amount the first spouse was receiving. The survivor can choose to transfer to their benefit later if it is larger than the one initially provided. If the surviving spouse was eligible for benefits before the receipt of the deceased spouse’s benefits at FRA, the surviving spouse can collect the deceased spouse’s delayed credits.
Early retirement age is 60, and surviving spouses can take reduced survivor benefits. However, like retirement benefits, opting to receive the SRB in a lump sum will reduce the amount received every month.
This means that choosing when to take benefits is one of the most sensitive issues for clients, and if done inappropriately can lead to the loss of a lot of money as well as credibility.
There are many factors to consider when deciding when to file for Social Security benefits: There are many factors to consider when deciding when to file for Social Security benefits:
- The current amount of cash required – if you are in dire need of the income in question, the only feasible option could be filing at 62.
- Your physical and mental wellness as well as your lifespan – how many years would you require the benefits? This has benefits if the person survives longer, or, in other words, if he is living longer.
- Other sources of income – are you still able to earn adequate income without filing for Social Security?
- Spousal options – provided you meet the requirements, you might want to file a different strategy based on spousal or survivor benefits.
Claiming benefits is not that easy and there is no perfect age to claim benefits as it depends on the available factor. It is always wise to consult a financial advisor so that you do not make a hasty decision that might be costly in the future. While those claiming social security can begin doing so at 62, to receive the full amount of the benefit that you earned, you will need to wait until the age of retirement.
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