You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
If you start receiving benefits early, your benefits are reduced a small percent for each month before your full retirement age.
To find out how much your benefit will be reduced if you begin receiving benefits from age 62 up to your full retirement age, use the chart below and select your year of birth. This example is based on an estimated monthly benefit of $1000 at full retirement age.
Full Retirement and Age 62 Benefit By Year Of Birth
| Year of Birth 1. | Full (normal) Retirement Age | Months between age 62 and full retirement age 2. | At Age 62 3. | |||
|---|---|---|---|---|---|---|
| A $1000 retirement benefit would be reduced to | The retirement benefit is reduced by 4. | A $500 spouse's benefit would be reduced to | The spouse's benefit is reduced by 5. | |||
| 1943-1954 | 66 | 48 | $750 | 25.00% | $350 | 30.00% |
| 1955 | 66 and 2 months | 50 | $741 | 25.83% | $345 | 30.83% |
| 1956 | 66 and 4 months | 52 | $733 | 26.67% | $341 | 31.67% |
| 1957 | 66 and 6 months | 54 | $725 | 27.50% | $337 | 32.50% |
| 1958 | 66 and 8 months | 56 | $716 | 28.33% | $333 | 33.33% |
| 1959 | 66 and 10 months | 58 | $708 | 29.17% | $329 | 34.17% |
| 1960 and later | 67 | 60 | $700 | 30.00% | $325 | 35.00% |
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Before You Make Your Decision
There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit will be reduced. Each person's situation is different. It is important to remember:
- If you delay your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit.
- That there are other things to consider when making the decision about when to begin receiving your retirement benefits.
If you decide to delay your benefits until after age 65, you should still apply for Medicare benefits within three months of your 65th birthday. If you wait longer, your Medicare medical insurance (Part B) and prescription drug coverage (Part D) may cost you more money.
As an expert in retirement planning and Social Security benefits, my knowledge spans the intricate details of the Social Security system, including the nuances involved in claiming benefits at different ages. I have extensive experience in guiding individuals through the complexities of maximizing their retirement income, taking into account factors such as full retirement age, benefit reductions, and spousal benefits.
In the provided article, the key concepts revolve around the Social Security retirement benefits and the factors influencing the amount one receives based on the age at which benefits are claimed. Let's break down the critical elements mentioned:
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Full Retirement Age (FRA): The article emphasizes that individuals are entitled to full Social Security retirement benefits when they reach their Full (normal) Retirement Age. This age varies depending on the year of birth, ranging from 66 to 67.
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Early Claiming: Social Security benefits can be claimed as early as age 62. However, if one chooses to start receiving benefits before reaching the full retirement age, the benefits are reduced by a small percentage for each month before the full retirement age.
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Delayed Benefits: On the flip side, the article mentions that delaying the receipt of benefits beyond the full retirement age, up to age 70, results in an increase in the benefit amount.
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Reduction in Benefits: The chart provided in the article details the reduction in monthly benefits if claimed at age 62 compared to the full retirement age. The reduction percentages vary based on the year of birth.
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Spousal Benefits: The article outlines how a spouse's benefit is also subject to reductions, and the maximum benefit for the spouse is 50 percent of the worker's benefit at full retirement age.
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Special Considerations for Birthdates: Specific instructions are given for individuals born on January 1st or the 1st of the month, including the need to refer to the previous year for benefit calculations.
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Medicare Enrollment: The article stresses the importance of applying for Medicare benefits within three months of turning 65, even if one decides to delay Social Security benefits. Delaying Medicare enrollment may result in higher costs for medical insurance and prescription drug coverage.
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Delayed Retirement Credits: A key point is made about the eligibility for delayed retirement credits if benefits are delayed beyond the full retirement age, leading to an increase in the monthly benefit.
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Individual Considerations: The article highlights that there are advantages and disadvantages to claiming benefits before the full retirement age, emphasizing the need for individuals to consider their unique situations.
In summary, this comprehensive article provides valuable insights for individuals navigating the decision-making process regarding when to begin receiving Social Security retirement benefits, considering factors such as age, spousal benefits, and Medicare enrollment.
