Any American who has worked at least ten years, has paid the appropriate taxes and is of the appropriate age to retire, can get monthly Social Security benefits.
The Social Security Administration (SSA) changes each year the full retirement age, that is, with which you reach the full income (100%) of Social Security.
Social Security: What will be the age to retire in 2022 and why has it increased
According to World Report US News, the full retirement age will increase each year in two-month increments, and it all depends on your year of birth.
That said, by 2022, the full retirement age for those born in 1960 would be 67; for those born in 1959 it would be 66 years and 10 months; for those born in 1958, 66 years and eight months, and so on.
According to the United States Congress, improvements in the health of the elderly and increases in life expectancy are one of the main reasons for raising the retirement age.
It is worth mentioning that the fact that the full retirement age has increased does not mean that you have to meet this deadline in order to request your retirement and receive monthly Social Security checks, you can request payments from the Administration if you meet the minimum of ten years working.
However, by not being at full retirement age and requesting benefits before reaching it, the money you receive will be affected. For example, if you are 62 years old, you can ask for retirement income, but your benefit will be reduced for an early claim.
In other words, Insurance benefits are higher for those who have a later retirement age than for those who apply early.
Knowing what to expect from your Social Security benefits can help you plan for retirement.
Determining your Social Security benefits is an important point when planning for your retirement, especially if you expect to rely on them during your retirement years.
According to the Center on Budget and Policy Priorities, about 97% of older Americans receive or will receive Social Security benefits. For half of the seniors, Social Security provides 50% of their income, and for one in four, it accounts for 90%. As of June 2020, the median monthly benefit for a retired worker was $1,514 per month, which is about 40% of their previous earnings.
You can get an estimate of your benefits on the SSA website. The Retirement Calculator accesses your Social Security earnings record when you provide your name, Social Security number, date and place of birth, and your mother’s maiden name. Keep in mind that even though the estimate is based on your actual earnings record, it’s still just an estimate. The actual amount of benefits will be determined when they begin and will likely vary slightly from your estimate due to updates to your earnings record, inflation, the calculator’s assumptions about your future earnings, and the length of your employment.
Wondering how the United States government determines Social Security benefits? In addition to how much money you earn over your lifetime, the calculation is based on your full retirement age, when you retire, and whether you continue to work while receiving benefits.
What is my full social security retirement age?
Your year of birth determines your full retirement age or the age at which you are eligible to receive full Social Security retirement benefits. The full retirement age for those born in 1937 or earlier is 65. The full retirement age is gradually increasing for those born after 1937; for those born in 1960, the full retirement age is reached at 67 years.
Retire with Social Security
You don’t have to wait until you reach full retirement age to retire. You can retire earlier or later, although Social Security benefits will be affected by both options.
You can start receiving benefits at age 62—but doing so will reduce your benefits by up to 30%. Keep in mind that the benefit amount cannot be adjusted again once you reach full retirement age. The reduction is permanent to offset the Social Security charge over a longer period of time.
Delaying your retirement increases your benefits. In addition to adding years of earnings to your Social Security record, you’ll receive a credit for delayed retirement until age 70.
work during retirement
You can work after you start collecting Social Security, but your benefits will be reduced by $1 for every $2 you earn above the current earnings limit until you reach full retirement age. However, good news: Once you reach your full retirement age, your benefits will be recalculated based on the months in which benefits were withheld. Also, at that time you can work as much as you want with no income limit.
know your benefits
Consider the factors that determine your Social Security benefits when deciding when to retire and when to start receiving benefits. Knowing when and how much you will receive could be a factor in planning for your retirement years.
