One of the benefits of working until retirement age in the United States is that you are guaranteed an income post-retirement through the Social Security Administration. For most, it isn’t enough to live on, but with pre-tax retirement savings plans and a pension it can allow many senior citizens to live quite comfortably when their working years are behind them.
There are a whole host of retirement options for SSA post -retirement benefits, including the option to retire early for reduced benefits until you reach full retirement age.The answer that many seniors are seeking most frequently though is what their actual retirement age is.
In recent years, with the vast number of “Baby Boomer” generation retirees preparing to retire and collect their SSA benefits, the rules have been altered in order to better accommodate the massive increase in the number of eligible retirees. It can be a bit confusing, but there is actually a simple set of rules that apply to all retirees, both early retirement seniors and those retiring at full retirement age.
The SSA determines full retirement benefit age based on the year you were born. If you were born on January 1st of your birth year, the SSA actually calculates your retirement age based on the previous year. For senior citizens born in 1937 or earlier, full retirement age is the traditional and well known number of age 65. On the other hand, senior citizens born between 1943-1954, the official retirement age is 66.
Finally, anyone born after 1960 will not be considered full retirement age until they are 67 years old. There are various minor deviations and adjustments involved, but the bottom line is that your birth year and month is how the SSA will determine if you are eligible for full retirement. Should any senior choose to retire at age 62 for a reduced benefit payout until they reach full retirement age, there is a sliding scale of reductions that is as low as 20% for the oldest group of seniors, and as high as 30% for those born after 1960. Early retirees often consider the reduction worth it as they intend to work at a job they enjoy for a few years after retirement
If you are nearing your generation’s retirement or early retirement age and considering your options for Social Security Retirement benefits and Medicaid, you should contact London Eligibility for a free case review. The team at London Eligibility can help you understand your entitlements, complete your application, and ensure that you receive all of the benefits you’ve worked so hard to earn. Call today, and let London Eligibility help you make an informed decision about early retirement with the best advice and information available.