age requirement for retirement for social security
For example, if your full retirement age is 66 and you elect to start benefits at age 62, the reduced benefit calculation is based on 48 months. This means that the reduction for the first 36 months is 20% (five-ninths of 1% times 36) and 5% (five-twelfths of 1% times 12) for the remaining 12 months. Despite the impression left by some, the average Social Security retirement benefit today is modest – only about $16,000 per year overall with an average of only $14,000 per year for women. Regardless of your full retirement age in the chart, you still have the option to file for Social Security as early as age 62 or as late as age 70. If you file early, your benefits will be reduced by 6 2/3% per year before your full retirement age, or five-ninths of 1% per month, up to three years early. Impact of Raising the Retirement Age Beyond Age 67. Those proposing to raise the age of eligibility for full retirement benefits to 70 or even 72 view this as a way to reduce the deficit and increase Social Security's solvency. As in the past, proposals to raise the retirement age come with an additional reduction in benefits. This makes your benefit 16% higher than the amount you would have received at age 66. You can also refer to your annual Social Security statement, which lists your projected benefits at age 62, full retirement age, and age 70. You'll get a penalty for taking Social Security too early... If you choose to start receiving your Social Security check up to 36 months before your full retirement age, be aware that your benefit is permanently reduced by five-ninths of 1% for each month. The retirement age for full Social Security benefits has already been increased from 65 to 67 for anyone born in 1960 or later. This increase was enacted in 1983 as part of comprehensive legislation to strengthen Social Security's financing at a time when the program faced an imminent financial crisis. The age at which you can start receiving full Social Security retirement benefits is a moving target and depends on your birth year (see table below). You can elect to take benefits as early as age 62 (earlier only if you are a survivor or on disability), or wait as late as 70. As I mentioned, the current Social Security retirement age is 66. This is the case for Americans born in 1954 or earlier, but after that birth year, the full retirement age will gradually increase to 67. Here's a table to help you determine your own full Social Security retirement age. As I mentioned, the current Social Security retirement age is 66. This is the case for Americans born in 1954 or earlier, but after that birth year, the full retirement age will gradually increase to 67. Here's a table to help you determine your own full Social Security retirement age. If You Were Born in ... Earning a wage (or even self-employment income) could reduce your benefit temporarily if you take Social Security early. For example, if you're still working and you haven't reached your full retirement age, $1 in benefits will be deducted for every $2 you earn above the annual limit ($15,720 in 2016).
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