age for going on social security
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age. If you will reach full retirement age in 2017, the limit on your earnings for the months before full retirement age is $44,880. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings. (You can start the sign-up process here up to three months before the month of your 65th birthday.) By contrast, you can start collecting Social Security anytime from age 62 to 70 and the later you start, the bigger your benefit. Just how much bigger depends on when you were born. Americans born from 1943 to 1954 have a “normal” or “full” retirement age of 66. Retirement Blog. Social Security going up 1.7%. Social Security announced this morning that the annual cost of living, or COLA, increase for 2015 will be 1.7 percent. For the average Social Security recipient, that is a monthly increase of about $22.20, bringing the payment to about $1,328 per month or $15,938 a year in 2015. You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefit. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn. For workers the Social Security tax rate is 6.2% on income under $127,200 through the end of 2017. The worker Medicare tax rate is 1.45% of all income—employers pay another 1.45%. Employers pay 6.2% up to the wage ceiling and the Medicare tax of 1.45 percent on all income. If you choose to start benefits early, Social Security will use your FRA to compute the reduction in the monthly amount. For instance, if you're due $1,000 a month at full retirement age, you would get only $750 a month at 62, a 25 percent drop. If you claim Social Security early, between ages 62 and the current full retirement age of 66, but you continue to work, in 2015, you'll be able to earn $15,720 per year or $1,310 per month without penalty. After that, Social Security will reduce your benefit by $1 for every $2 you make above the limit. A calculator on the Social Security site will give you average life expectancy, without regard to your health or family history. It shows a woman turning 62 in 2014 will live to an average of 86.2 and a man of the same age to 83.8. In the United States, Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program. The original Social Security Act was signed into law by President Franklin Roosevelt in 1935, and the current version of the Act, as amended, encompasses several social welfare and social insurance programs. Q: What is full retirement age (FRA) and why is it important? A: Your FRA is the age at which you become entitled to your full Social Security retirement benefits based on your lifetime earnings. Your FRA depends on your birthday. People born between 1943 and 1954, for instance, reach full retirement age at 66.
62 to 70