If you are interested in the time that you may actually receive Social Security retirement benefits, you may be shocked to hear the results. In a law passed by Congress in year 1983 the full benefit was set to be given out at the age of 65. Early retirement social insurance could be paid out at the age of 62 however if a person was willing to take a reduction to 80% of the full benefit cost. The full benefit age has since risen to the age of 66 and will eventually be phased into a rise of age 67 for those who were born in the year 1960 or later in the United States.
The early retirement benefit age will continue to be 62 but with a more severe penalty for early retirement age. The benefits are taken at age 62 will reduce the total benefits to 70% of the full benefit taken at the age of 67. For individuals that are willing to take Social Security retirement benefits at the age of 65 the full benefit amount will be reduced to 86.7% of the full benefit. This is a drastic change that will be going into effect within the next few years. If you are planning on retiring this could potentially affect your decision or mean that you could be required to work for an additional few years in order to get full retirement benefits out of Social Security.
There is definitely a financial bonus when it comes to delaying your retirement by a few years. The good news is that life expectancy has grown exponentially over the past 20 years and the chances of enjoying a long retirement even retiring at the age of 67 are very high. If an individual is reaching the full benefit in the year 2015 it’s possible to receive an additional 8% benefit for each year that they delay collecting the Social Security benefit from the government. The maximum delay amount will actually going to the age of 70 and it’s estimated that the average benefits for someone at the age of 70 years old is around $3500 a month for the year 2015. Even though you may have had big dreams of retiring early at the age of 65 or even 62, it could make sense financially to continue working at your job up into the age of 70 to potentially take advantage of the full benefit amount from Social Security retirement age.