In general, whether or not you are eligible to begin receiving Social Security retirement benefits depends on your age. Generally, the people who are eligible to receive Social Security retirement benefits can start as early as age 62. However, the amount of Social Security benefits that are received by individuals who begin receiving them at this age will be smaller than the amount received by people who wait until their full retirement age or even older.
Social Security Administration (SSA)
The Social Security Administration (SSA) determines the minimum retirement age based on the month and year you were born. The minimum retirement age is based on the idea that retiring later in life allows retirees to collect larger monthly payments as well as to maximize the total amount of retirement benefits available over the course of their retirement. Upon turning 62, people are allowed to chose to begin receiving Social Security retirement benefits. But, when deciding when to begin taking retirement payments, individuals should consider the benefits of waiting for their “full retirement age.”
When too Take Benefits?
Before deciding when to start taking the retirement benefits, you should figure out your full retirement age. This term is simply a retirement age, which is determined by the Social Security Administration and depends on the year in which you were born. A person’s full retirement age is determined by their year of birth.
Determine by Birth Year
For individuals who were born any year between 1943 and 1954, the full retirement age is 66. For those were born any year between 1955 and 1959, the full retirement age is 66 and some months up to 2 months depending on your birth year For those who were born any year 1960 or later, their full retirement age is 67. If you are born before 1943, your full retirement age is 65. By waiting until your full retirement age to start taking out Social Security retirement benefits, your monthly Social Security payment will be about 8% higher for each year beyond your minimum eligible age that you wait. That means, if you are eligible for Social Security at age 62, but wait until age 70 to start receiving benefits, your monthly payment would be 32% higher than if you started at age 62.
Calculate Your Retirement Benefits
Retirement planning can be a daunting prospect for anyone, especially when it comes to understanding your Social Security benefits. Don’t worry, though – taking into account your age and your earnings history, you can easily figure out how much you’re likely to get with Social Security benefits. Here’s how to calculate your Social Security retirement benefits and make sure you’re planning ahead for a successful retirement.
The Social Security Administration (SSA) has a nifty calculator for figuring out your retirement benefits. To use the calculator, you’ll need to provide some personal information, like your age, the year you were born, and the amount you earned during your highest-earning 35 years in the workforce. The calculator will then provide you with an estimate of your future Social Security benefits.
This is ONLY for Planning, Not Exact!
Keep in mind that this estimate isn’t a guarantee of what you’ll actually get, though. It’s just a framework to help you plan ahead. Your actual benefits could be more or less than what the calculator tells you. That said, it’s still beneficial to have some idea of your potential Social Security benefits. Once you’ve estimated your benefits through the SSA calculator, you can get an even more accurate estimate by signing up for a personal my Social Security account. You can create one for free through the SSA website. The SSA keeps track of all your income for the past 35 years, so signing up for a personal account can help you make sure all the information is accurate.
The Older You Wait, the More Your Get!
It’s also important to keep in mind that your Social Security benefits are based on your age. Generally speaking, the older you are when you start collecting Social Security benefits, the higher your monthly payment will be. In most cases, you can begin collecting benefits at age 62, but if you wait until age 70, you could more than double your monthly payments. When it comes to Social Security benefits, you have lots of options. You can begin collecting them at different ages, opt for different payment methods, or even choose to receive benefits from an ex-spouse or deceased spouse.