Social Security in the United States is in the news these weeks. Among other things, because the retirement age has been raised. People born in 1954 or earlier reach their full retirement age (FRA) at 66, but for each subsequent year of birth until 1960, the agency has increased eligibility for full retirement in two-month increments, up to a maximum of 67.
If you withdraw your money at age 62 instead at age 67 (or 66 depends on the case), you will lose money for sure
Therefore, citizens born in 1959 are the last retirees who can reach full retirement age before turning 67. For example, if you delay your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit.
There’s a bill for which, if you withdraw your money at age 62 instead at age 67 (or 66 depends on the case), you will lose money for sure. Now, with this regulation, if a retiree begins applying for a pension at age 62, they will lose approximately 30% of their benefits, which will reduce their monthly salary to $700. Meanwhile, if they postpone the application until age 70, the benefit will increase by 8% annually. By delaying the application until age 70, the benefit would increase by 132%, raising the monthly salary to $1,320.
One exception: if you were born on January 1, 1960, the SSA considers you a ‘1959 baby’
Regarding ages, to put it correctly, seniors born after 1959 won’t reach FRA until January 2027 at the earliest. (With one exception: if you were born on January 1, 1960, the SSA considers you a “1959 baby.”) With an FRA of 66 years and 10 months, this group of claimants will begin to qualify for Social Security retirement benefits in November 2025 at the earliest.
The average retirement benefit is currently $2,005.05 per month, according to figures released by the SSA in early July, while according to the same SSA, the maximum possible monthly retirement benefit in 2025 is $5,108 per month.
If you start receiving benefits early, your benefits will be reduced to a small percentage
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only 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 will be reduced to a small percentage for each month before your full retirement age, the official statement says.
From the SSA they advise how to choose one option or the other. 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, they said.
Nearly 68 million Social Security beneficiaries will see a 2.5 percent cost-of-living adjustment
Recently it’s been published that, because of the COLA, the SSI will increase. Nearly 68 million Social Security beneficiaries will see a 2.5 percent cost-of-living adjustment (COLA) beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024. (Some people receive both Social Security benefits and SSI), as they confirmed at the website of the SSA.
