To What Age Can You Draw Social Security Disability

If you're thinking about retirement and plan to draw Social Security retirement benefits, you're probably asking "What is my Social Security retirement age?" To draw full Social Security benefits, your Social Security age may have increased with legislation passed by Congress over the years. In the past, Social Security considered age 65 as the full retirement age (FRA) for everyone. Early retirement benefits can be requested as early as age 62. You will receive a permanent lower monthly benefit if you make the choice to retire early.

Today, the full retirement age for Social Security benefits is 66 years if you were born between the years of 1943 to 1954. The retirement age then gradually increases to age 67 for people born in 1960 and thereafter. If your full retirement age for Social Security is 67, the decision to request early retirement benefits at age 62 results in a 70 percent reduction of full Social Security retirement benefits. If your full Social Security retirement age is 65 and you draw early retirement at 62, your benefits are then reduced to about 87 percent of full Social Security benefits.

Social Security Full Retirement Age and Delayed Retirement

There is obviously a financial bonus to consider. Delaying retirement to your full Social Security retirement age will put more benefits in your pocket. If you reach full retirement age of 66 in 2016, you receive an added eight percent benefit for every year you delay collecting Social Security retirement benefits.

If you decide to work until age 70 and delay your request of Social Security retirement until that time, your benefit is 32 percent more because of the decision to delay. The decision can have meaningful income consequences. The maximum Social Security retirement benefit in this situation is a monthly benefit of USD 3,501 per month.

Waiting to draw Social Security retirement benefits pays but, if you must request Social Security at full Social Security retirement age (or as early as age 62 for early retirement benefits), these benefits are yours. You've earned them.

Of course, married people must plan retirement for two. If you earn or earned more money than your spouse, the decision to consider delayed retirement can mean more survivor benefits for your spouse if you die before him or her.

Let's review some scenarios about when to draw Social Security and Social Security age considerations.

When to Draw Social Security and Your Social Security Retirement Age

If you request Social Security retirement before you reach full Social Security age for retirement, your benefits are automatically reduced. In comparison, if you wait longer—after your Social Security age for retirement is reached—your Social Security retirement benefits are automatically increased. The decision to wait just a year or more can mean more money at retirement.

For instance, Mary's Social Security age for retirement is age 66. At her 66th birthday, she uses the Social Security benefits calculator to learn that she can now earn monthly retirement benefits of about USD 1,000. She waited until her full Social Security retirement age because, at early retirement (age 62), Mary learned she would earn just USD 750—about 75 percent of her monthly retirement benefits at full Social Security age:

• At age 63, Mary could draw USD 800 per month.
• At age 64, she could receive USD 866 per month.
• At age 65, she is eligible for USD 933 per month.

Because Mary is healthy and wants to continue working, she visits the Social Security retirement benefit calculator again. If she waits until her birthday next year, she will draw USD 1080. Two years later, at age 68, she can receive USD 1,160 per month. At age 69, she is eligible to receive USD 1,240 per month. If she waits until her 70th birthday, her benefits increase to USD 1,320 per month.

That's why waiting to draw Social Security benefits can add significantly to cash flow in retirement. Mary's benefits at her 70th birthday are actually more than 75 percent more than if she requested early retirement benefits on her 62nd birthday.

Social Security Retirement Age and Your Birth Year

To calculate your Social Security retirement benefit, start with your birth year. If you were born after 1954 (people born between 1943 and 1954 are considered full Social Retirement age in the month they turn 66 years old), your Social Security retirement age increases by two months each year. For instance:

• People born in 1955 reach full Social Security age for retirement at 66 years and two months.
• People born in 1956 reach full Social Security age for retirement at age 66 years and four months.
• People born in 1957 reach full Social Security age for retirement at age 66 years and six months.
• People born in 1958 reach full Social Security age at 66 years and eight months.
• People born in 1959 reach full Social Security age at 66 years and 10 months.
• People born in 1960 or later reach full Social Security age at 67 years.

Social Security Retirement Age and Your Retirement Benefits

It's important to consider your financial situation and family requirements before making delayed retirement decisions. If you've planned ahead by saving for retirement in a tax-deferred retirement plan, drawing Social Security later can make good financial sense for you. Consider your Social Security retirement age as a first step in making decisions about when to claim Social Security benefits.

To What Age Can You Draw Social Security Disability

Source: https://socialsecurityretire.org/what-is-my-social-security-retirement-age/

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