Booming BABYs and beyond have a number of decisions to make when it comes to their retirement financial future.
The new year marks the new full retirement age to start receiving Social Security benefits.
Full retirement age changes to 67 for those turning 62 in 2022.
Remember, you can start getting Social Security retirement benefits as early as age 62 but it will only be a percentage.
If you wait until full retirement age, you are entitled to the full benefits.
if you delay receiving your benefits From the time you reach full retirement age to age 70, your benefit amount will increase.
It’s important to know how your age will affect your monthly Social Security income.
If you had the option, delaying the claim would mean more money in your pocket.
What is your full retirement age?
Full retirement age (FRA) is based on your year of birth.
- Year of Birth: 1943-1954. FRA: 66
- Year of Birth: In 1955. FRA: 66 and two months
- Year of Birth: In 1956. FRA: 66 and four months
- Year of Birth: In 1957. FRA: 66 and six months
- Year of Birth: 1958. FRA: 66 and eight months
- Year of Birth: Year 1959. FRA: 66 and 10 months
- Year of Birth: 1960 and later. FRA: sixty seven
To show you how much your benefits will be reduced: based on a monthly benefit amount of $1,000, if you were born in 1960 and started receiving Social Security at age 62, your benefits will decrease down to $700.
Claiming Social Security early will permanently reduce it monthly check amount.
Why has the full retirement age increased?
The original Social Security Act of 1935 set the minimum age to receive full retirement benefits at 65.
In 1983, an amendment was adopted that gradually increased the age for full collection Social Security benefit.
The retirement age increased from 65 to 67 over a 22 year period.
Full retirement age is currently 67 years old.
Congress cites improvements in the health of the elderly to increase life expectancy.
Plus, we outline when Social Security benefits start and stop.
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https://www.the-sun.com/money/4489354/wait-claim-social-security-full-retirement-age-changes/ Why 2022 retirees should wait to claim Social Security as retirement age changes