Citizens in America have always been deeply interested in retirement and Social Security payments. This topic is especially important for senior citizens and those who are preparing for retirement. Now new news has come out that the concept of “retirement at the age of 67” is gradually changing. The Social Security Administration (SSA) has made a new change under which the full retirement age for people born in 1959 has been fixed at 66 years and 10 months. At the same time, the retirement age for citizens born in 1960 or later will still be 67 years. The direct effect of this change is that people will now prepare their financial plans accordingly.
What are Social Security benefits?
The Social Security Administration (SSA) is the leading financial institution in America that provides retirement, disability and other benefits to citizens. People who work for a long time and pay Social Security tax during their tenure are eligible for these benefits after retirement. Usually retirement benefits can be started from the age of 62, but it completely depends on the option of the person at what age he claims it.
If a person starts taking benefits early, i.e., at the age of 62, then his monthly payment will be less. On the other hand, if someone waits till the age of 70, he will get more benefits. For this reason, SSA advises citizens to decide to take retirement payments at the right time according to their situation and needs.
Goodbye to retirement at the age of 67—what is the change?
Traditionally, the full retirement age (FRA) in the US was considered to be 67 years. But now a slight change has been made in it for citizens born in 1959. For them, the full retirement age has been made 66 years and 10 months. That is, they can get full benefits 2 months earlier. However, the age will still be 67 years for those born in 1960 and later.
This change may seem minor, but it is very important for financial planners. Because the amount of retirement payment depends on when the person claims it.
Amount of retirement benefit
The amount of benefit received from Social Security depends on the person’s income, work history and claim age. If a person takes benefits at full retirement age, i.e., at 67 years, then he can get about $4,018 per month. On the other hand, if someone waits till the age of 70, this amount can increase to $5,108. Conversely, if someone starts taking benefits at the age of 62, his monthly payment will be reduced by about 29%.
It is clear from this that the longer you wait, the higher the benefit will be. But it should be kept in mind that taking benefits late means that you will get them for a shorter period. Therefore, this decision depends entirely on the individual’s health condition, financial needs, and family circumstances.
Social Security Eligibility 2025
Some conditions must be met to receive Social Security benefits:
- You must be at least 62 years of age.
- You must have worked while living in the US.
- You must have at least 40+ work credits.
- You must have at least 35 years of work experience.
- You must have retired after quitting work.
People who meet all these conditions will be considered eligible for the benefits provided by the SSA.
Retirement age by year of birth
The SSA has set different full retirement ages by year of birth:
- 1943-1954: 66 years
- 1955: 66 years, 2 months
- 1956: 66 years, 4 months
- 1957: 66 years, 6 months
- 1958: 66 years, 8 months
- 1959: 66 years, 10 months
- 1960 and beyond: 67 years
It is clear from this table that the retirement age has been gradually increasing over time.
What happens if you delay payment?
If you delay taking Social Security benefits, it will definitely benefit you. According to the SSA, if you wait till age 70, the monthly amount will increase significantly. For example, if the benefit is $4,018 at the age of 67, it will reach $5,108 at the age of 70, i.e., about 30% more.
On the other hand, those who claim early may have to suffer a loss. The amount is reduced by about 29% if claimed at the age of 62. Therefore, while taking this decision, one should keep in mind his financial situation, health and family responsibilities.
Conclusion
The decision to say goodbye to retirement at the age of 67 in the United States is a big change for senior citizens. Now the full retirement age for people born in 1959 has become 66 years and 10 months, while for people born in 1960 and later, it remains 67 years.
Social Security benefits are an important support in the life of every senior citizen. These not only provide financial security but also make life easier after retirement. Therefore, every person should understand this new rule and make his financial planning accordingly.
FAQs
Q. What is the full retirement age for people born in 1959?
A. The full retirement age for those born in 1959 is 66 years and 10 months.
Q. Can I claim Social Security benefits before full retirement age?
A. Yes, benefits can be claimed as early as 62, but the monthly amount will be reduced.
Q. How much will I receive if I wait until age 70?
A. Waiting until 70 can increase your monthly benefits by about 30% compared to claiming at full retirement age.
Q. Who is eligible for Social Security benefits?
A. You must be at least 62, have worked in the U.S., have 40+ work credits, and meet other SSA requirements.
Q. Does delaying benefits guarantee higher total payout?
A. Delaying increases monthly benefits, but you will receive payments for a shorter period overall.
