The full retirement age for Social Security is increasing
Image Source: 123rf.com
You may believe that 65 is the standard age for retirement. Although this belief is widespread, the Social Security full retirement age is actually older. The FRA will increase again in 2025. This change could affect the ability of Baby Boomers and Gen Xers to retire fully this year. What is the FRA? The FRA of Social Security is the date when workers can start claiming full SS benefits. The FRA is determined by the number of working years and income earned during those years. The longer a person has worked, the greater the amount of Social Security benefits they will receive when they claim their benefits. At one time, the FRA stood at 65. The retirement age was raised in 1983 to reflect the longer life expectancy of Americans. The FRA has increased in increments of two months since 1983, depending on the person’s year of birth. The retirement age for individuals born in 1957 is 66 years, 6 months (or beginning in 2023). The FRA for people born in 1958 is 66 years 8 months (September 2020). Now, the FRA will increase again for those born in 1959. Social Security’s new FRA
For people born in 1959 the full retirement age will increase by two month. The full retirement age will increase to 66 years, 10 months in 2025. In November 2025, people born in 1959 can start receiving their full Social Security benefits. There is flexibility in claiming Social Security benefits. Everyone can claim their Social Security benefits once they reach the age of 62. If you claim your SS before the FRA you will get a reduced amount and that will be the amount you receive for the remainder of your retirement. If you claim at age 62, and you get a benefit that is about 30% lower than your full benefit, you will receive this amount throughout your retirement. Social Security Administration stated that someone retiring in 2024 at their FRA could receive a maximum monthly payment of $3,822. A retiree at 62 years old would get a maximum benefit of $2710.
Surprisingly, many Americans opt to retire at 62 anyway. How to handle the latest FRA increase
The recent FRA increases are nothing new. It may surprise older workers. Benefits will be reduced if you claim just one month before your full retirement age. It may be better to wait until you reach your FRA in order to receive your maximum benefits and not worry about anything during retirement. If you want to know when you can expect to receive all of your benefits, you can use this calculator from the Social Security Administration’s website.
Read More
These Are The Top 3 Most Expensive Pharmacies and 2 Of The Cheapest
