When Can a Person Start Collecting Social Security
SOCIAL SECURITY
Fact Sheet
Social Security
The Social Security Amendments of 1983 (H.R. 1900, Public Police 98-21) contained two provisions which may have an impact on when an individual decides to retire. The two provisions are an increment in the retirement historic period that can first affect individuals retiring in 2000 and an increase in the delayed retirement credit for those who work beyond total retirement age.
Increase in Retirement Age
- For persons born in 1938 or later, their Social Security benefit may be affected by a provision that raises the age at which total Social Security benefits are payable.
- The historic period for collecting full Social Security retirement benefits volition gradually increase from 65 to 67 over a 22-twelvemonth period commencement in 2000 for those retiring at 62.
- The earliest a person tin first receiving reduced Social Security retirement benefits volition remain age 62.
| Year of Birth | Full Retirement Age |
| 1937 or before | 65 |
| 1938 | 65 and two months |
| 1939 | 65 and 4 months |
| 1940 | 65 and 6 months |
| 1941 | 65 and 8 months |
| 1942 | 65 and 10 months |
| 1943 � 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and iv months |
| 1957 | 66 and vi months |
| 1958 | 66 and eight months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
- Background
- The 1983 Amendments phased in a gradual increment in the historic period for collecting full Social Security retirement benefits. The retirement age will increase from 65 to 67 over a 22-year flow, with an xi-yr hiatus at which the retirement historic period will remain at 66.
- The original Social Security Act of 1935 prepare the minimum age for receiving full retirement benefits at 65.
- Congress cited improvements in the health of older people and increases in average life expectancy as primary reasons for increasing the normal retirement age.
- Since the program first began paying monthly Social Security benefits in 1940 the average life expectancy for men reaching historic period 65 has increased nearly 4 years to age 81; for women reaching historic period 65, their boilerplate life expectancy has increased nearly half-dozen years to age 84.
- The boilerplate age for men retiring in 1998 was 64. The boilerplate age for women retiring in 1998 was 64. In 1998, almost 69% of men and women retired and started taking Social Security benefits before age 65.
The earliest a person can start receiving Social Security retirement benefits will remain age 62.
- Social Security benefits are reduced for each month a person receives benefits before full retirement historic period.
- For persons whose full retirement age is 65, a retirement do good is reduced by five/9 of 1% for each month of benefits prior to full retirement age.
- Every bit the age for collecting total Social Security benefits increases, persons who retire at age 62 will see a greater reduction in their Social Security benefits.
- For persons whose total retirement age is age 65 and 2 months or later, a retirement benefit will be reduced by 5/9 of 1% for each month upward to the first 36 months of benefits before full retirement age, plus 5/12 of 1% for each month of benefits in excess of 36 prior to full retirement age.
- Examples:
- Social Security benefits are reduced by 20% for a person who retires at 62 whose full retirement age is 65 (born 1937 or before).
- Social Security benefits will exist reduced past 205/6% for a person whose full retirement age is 65 and 2 months (retires at 62 in 2000).
- Social Security benefits will be reduced past 25% for a person who retires at 62 whose full retirement age is 66 (born 1943-1954).
- Social Security benefits will be reduced by 30% for a person who retires at 62 whose full retirement age is 67 (born in 1960 or later).
- Background
- The Social Security Amendments of 1956 lowered the minimum age for retirement benefits to 62 for women.
- The Social Security Amendments of 1961 extended the early on retirement provision to men.
The new Social Security Statement :
- Tells a person their total retirement age and
- Provides a retirement benefit estimate for age 62, total retirement historic period, and age seventy.
- The age 62 benefit guess incorporates the reduction for early retirement.
- The age seventy benefit estimate incorporates delayed retirement credits.
SSA Press Office 449 Altmeyer Bldg. 6401 Security Blvd. Baltimore, Medico 21235
410-965-8904 FAX 410-966-9973
Belum ada Komentar untuk "When Can a Person Start Collecting Social Security"
Posting Komentar