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What is the Social Security Retirement Age?Social Security’s full-benefit retirement age is increasing gradually because of legislation passed by Congress in 1983. Traditionally, the full benefit age was 65, and early retirement benefits were first available at age 62, with a permanent reduction to 80 percent of the full benefit amount. Currently, the full benefit age is 66 years and 2 months for people born in 1955, and it will gradually rise to 67 for those born in 1960 or later. Early retirement benefits will continue to be available at age 62, but they will be reduced more. When the full-benefit age reaches 67, benefits taken at age 62 will be reduced to 70 percent of the full benefit and benefits first taken at age 65 will be reduced to 86.7 percent of the full benefit. There is a financial bonus for delayed retirement. An individual reaching the full-benefit age in 2017 (66 years and 2 months old) receives a monthly benefit that is 8 percent higher for each year he or she delays collecting benefits until the latest claiming age of 70, at which point benefits are 132% of what they would have been at the normal retirement age. (When the full benefit age reaches 67, benefits claimed at age 70 will be 24 percent higher because of that delay.) The maximum retirement benefit in 2017 for someone who waits until age 70 to collect benefits is $3,538 a month. For more information, see:
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* The views of Academy members are their own and not an official position of the National Academy of Social Insurance or its funders. How can we help you?Stay up-to-date on the latest research & policy updates.Subscribe to our newsletterSocial Security forms an important part of most people's retirement plans, but the program itself does much more than just that. In a nutshell, Social Security is designed to support disabled and retired workers and their families by providing a guaranteed source of lifetime income for those who meet certain criteria. Here's a closer look at how the program works, the different types of Social Security benefits available, and what you can expect when you're ready to claim benefits. How Social Security worksSocial Security is a government program that collects taxes from working Americans and distributes these funds to qualifying disabled workers, retirees, and their families to help them remain financially secure. A worker typically must earn 40 credits to qualify for Social Security, though if they die or are disabled young, they may qualify with fewer credits. A credit in 2022 is defined as $1,470 in earned income, and you may earn up to four credits per year. You may claim Social Security based on your own work record, if you've earned enough credits, or you may be eligible to claim spousal benefits based on your current or ex-spouse's work record if this amount is larger than what you're entitled to on your own. Dependent children and other family members may also qualify for family benefits in certain circumstances. When you're ready to apply for Social Security, you must fill out an application online or at your local Social Security Administration office. A government representative will verify the information in your application to determine if you qualify and then you'll begin receiving monthly checks.  Source: The Motley Fool There are three main types of Social Security benefits:
Retirement benefitsSocial Security retirement benefits are for workers 62 and older who have earned at least 40 credits. The size of your benefit checks depends on your average indexed monthly earnings (AIME) over your 35 highest-earning years, and the age at which you begin benefits. You must wait until your full retirement age (FRA) to claim your standard benefit based on your AIME. Your FRA is 66 if you were born between 1943 and 1954, then it rises by two months every year thereafter until it reaches 67 for those born in 1960 or later. Be Aware Claiming benefits before your full retirement age (FRA) reduces your checks. If you begin claiming at 62, you'll get only 70% of your standard benefit if your FRA is 67 or 75% if your FRA is 66. Every month you delay benefits increases your checks slightly until you reach the maximum benefit at 70. This is 124% of your standard benefit if your FRA is 67 or 132% if your FRA is 66. Receiving Social Security benefits under your FRA could cause you to lose some of that money back to the government if your income is high enough. The Social Security Earnings Test withholds $1 from your checks for every $2 you earn above $19,560 in 2022 if you will be under your FRA all year. If you'll reach your FRA in 2022, it'll take $1 for every $3 you earn over $51,960 if you reach this amount before your FRA. Once you're past your FRA, the government recalculates your benefit to include the amount it withheld. Certain family members can claim benefits on your work record if doing so would give them more money than they're eligible for on their own work record. Eligible family members include:
Spouses and ex-spouses must be at least 62 in order to claim benefits, and spouses and children must wait for the worker to begin claiming benefits themselves before they can claim family benefits on their record. Disability benefitsSocial Security disability benefits are available to adults 18 or older who are unable to work due to a physical or mental disability that is expected to last at least 12 months or result in death. You may still be eligible even if you haven't earned 40 credits, depending upon your age at the time of your disability. Your benefit is determined by your average lifetime earnings, so individuals who earned more while they were working will receive larger disability checks. You must provide the government with information about your work history and your medical condition, including relevant supporting documents, when you apply. The Social Security Administration will review your case to decide if you are eligible. If it rules in your favor, you'll receive disability checks for as long as your disability lasts or the rest of your life, depending on the condition. If it rules against you, you may request a reconsideration or appeal to an administrative law judge. Family members may be able to claim benefits on a disabled worker’s work record if they are:
Survivors benefitsSurvivors benefits are benefits for the family members of deceased workers who qualified for Social Security. Did you know? The amount of the survivors benefit depends on the deceased worker's average income, adjusted for inflation, and their relationship to the deceased. Surviving spouses who are 60 or older (50 or older if disabled) may claim survivors benefits, as can surviving spouses of any age if they are caring for the deceased worker's child who is under 16 or disabled. The same rules apply for ex-spouses as long as they were married to the deceased worker for at least 10 years and have not remarried. The deceased worker's children under 18, or up to 19 if still enrolled in high school, are eligible for benefits, as are disabled children of any age if they were disabled before 22. Parents of the deceased worker may also qualify for benefits if the deceased was providing 50% or more of their financial support before they died. In addition to these benefits, the surviving spouse or children may be eligible for a one-time death benefit of $255.
Related Retirement TopicsBrief history of Social SecurityThe Social Security program was created by the Social Security Act that President Franklin D. Roosevelt signed into law in 1935. The first checks went out in 1940. Originally it paid benefits only to workers 65 and older, but in the 1970s the government altered it to allow workers to claim benefits as early as 62. It also instituted annual cost-of-living adjustments (COLAs) to help Social Security keep pace with inflation. The program has worked fairly well so far, but many people fear for the future, when there will be fewer workers to support a greater number of Social Security recipients. The latest Social Security Trustees' Report indicates the program's trust funds would be depleted by 2034, after which it would be able to pay out only about 76% of benefits to retirees and about 92% to disabled workers. The government has proposed several possible solutions for ensuring the long-term sustainability of the program, but at present no plans have been set. There's no risk of the program disappearing in the next decade or two, but it's possible future benefits may not go as far as they do today. That's why today's workers need to prioritize their personal retirement savings, so they can cover most of their expenses on their own. The Motley Fool has a disclosure policy. Is it better to take Social Security at 62 or 67?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.
What is full retirement age for Social Security?The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
How much is Social Security at 62?How Your Social Security Benefit Is Reduced. Can I retire at 55?Can I Legally Retire at 55? There's nothing in the retirement rulebook that says you can't retire at 55 years old. In fact, some members of the FIRE (financial independence, retire early) movement aim to retire as early as 40. So it's perfectly legal to retire in your mid-50s if that's your goal.
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