Do you have a hard time in deciding on the best time to collect
the benefits of the Social Security? If yes, then you have come to the right
place. Here, you will be going to know the process and the updates regarding
the full retirement age in 2019. You may think that 62 or full retirement age
is the best time or should you wait until you are 70. These are some things
that may make your mind confused with the full retirement age. Of course, for
2019, changes have been done in the full retirement age that will be effective
from January.
In this post, we will discuss the updates to the full
retirement age and how it will affect other things. Have a look:
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When you are going to initiate the process of applying to
the Social Security benefits at age 62, your checks on the monthly basis are
decreased. If you want to claim the full benefit, then it is necessary for
signing up with the Social Security at the full retirement age, which is dependent
on the date of the birth. Start knowing how the full retirement age is going to
change and what it implies for the retirement payments.
The previous full retirement age for Social Security
In the past year, the full retirement age was used to be 65
for people born in 1937 or older. A person who is born between 1943 and 1954
has 66 as the full retirement age. The normal retirement age further rises to
66 and 6 months for those who are born in 1957 and 66 and 4 months for a person
born in 1956. When it comes to 2019 update for the full retirement age, it is increased
for a person with the birth year 1957 who reaches the age of 62. Now, the full
retirement age in 2019 is 66 years and 6 months. This increase shows a 2 month
hike for those who are born in 1956. Accordingly, the normal retirement age
will additionally increase in 2-month increments every year until it reaches 67
for a person born in 1960 or later.
If the Social Security are claimed earlier, then there will be a bigger reduction
Once you know the update, then you should also be familiar how
it affects the claimed benefits if you do it earlier. Employees who are
qualified for Social Security benefits can begin payments once they reach 62,
no matter what their full retirement age is. But, there will be a reduction in
the benefit to a great extent for those with an older superannuation age. It is
said that the full retirement age to get the Social Security benefits is that
age when you receive a 100% benefit and it is dependent on the birth year.
For people with birth year 1957, the normal retirement age
is 66 years, 6 months. They can receive payments as quickly as 62, at 72.5% of
the full payment amount. On the other hand, employees with the birth year 1957
will get their payments per month subtracted by 27.5% if they claim for
benefits at the age of 62, in comparison with a 26.67% benefit decrease for those
with the birth year 1956 and a 25% reduction for people with the birth year
1954. If an employee is qualified for a $1000 Social Security benefit on the
monthly basis at his or her normal retirement age, then if he or she will claim
at the age of 62 will decrease his monthly sum to 750 dollars if his or her
birth year is 1954 and for 1957 birth year, the reduction will be 725 dollars. According
to the authority of the Social Security Administration, it is finalized that an
individual acquires less month for every month irrespective of the time when
they claim the benefits, it is all about the later full retirement age. The
yearly COLA will be functional to these decreased payments, which will result
in a smaller dollar worth of the inflation adjustments also.
Delaying getting the SS benefits means less of a benefit
Of course, many American people look for tips and tricks
that can help them in increasing their monthly payments related to the Social
Security. In accordance with the latest update, one can increase his or her
monthly payments of the Social Security by delaying the process of claiming
after the normal retirement age till age 70. On the other side, people with an
older retirement age have some time like fewer months to delay the claiming
process and less of a benefit to make some earnings on the delayed retirement
credits.
It is stated that if an individual files at the age of 70,
if he or she had a full retirement age of 66, it implies that he or she waited
48 months past the normal retirement age and they will be capable of getting
132% of the amount of their primary insurance. On the other hand, if they submit the file at
the age of 70 with the normal retirement age of 66 years, 6 months, it gives
the fact that he or she waited forty two months past the normal retirement age
and they will be able to get 128% of the primary insurance sum.
There will be no change in the Medicare eligibility
There is no denied fact in the increase in the full retirement
age over some past years. When employees qualify for Medicare, the age has kept
65. A person who delays getting the Social Security benefits till their normal
retirement age or later still requiring signing up for Medicare at the age of
64 or sustain any other health insurance group on recent employment. This way,
he or she can ignore hefty late enrollment penalties on the Medicare. Make sure
that you have everything in familiar and in hands before going to claim for the
benefits of the Social Security. Visit the official website of the SSA to get
more latest updates on the SS changes, COLA, and much more.
