According to data from 2023, there are 59 million adults in the US who are over 65, which is the typical retirement age that most people consider when estimating their own retirement age.
Many of these folks apply for Social Security benefits from the Social Security Administration (SSA) as part of the retired population.
Even though 65 is regarded as the typical retirement age, many people will be shocked to learn that the SSA has a different retirement age.
SSA provides assistance to about 70 million people
Although seniors make up the majority of Social Security recipients, the program also provides assistance to survivors, people with disabilities, and those with little to no income or resources.
About 69 million people have applied for Social Security payments this year. Many of these recipients depend on Social Security as their main source of retirement income.
The typical Social Security stipend is slightly under $2,000 per month, which many people find insufficient to live comfortably in retirement. This presents a significant difficulty.
Nearly half of these beneficiaries owe federal income tax on their benefits, which presents another challenge.
However, the income limits and thresholds that determine whether you pay federal tax on your benefits have not changed in over 40 years, so what was once regarded as a high payment half a century ago is no longer the case.
This was criticized by many because Social Security benefits were only taxed for the highest earners. Additionally, the expense of living is on the rise.
Beneficiaries’ new retirement age
The minimum age at which you are eligible to claim your retirement income is sixty-two. However, it is well known that the SSA will boost your benefits if you wait as long as possible to file.
The SSA encourages people to wait until they reach the Full Retirement Age (FRA) by raising benefits for retirees. The FRA is not, however, the typical retirement age of 65, which is what everyone thinks of.
Read Also: $1,750 Payment for These Car Buyers — See If You Qualify by August 1
According to Social Security’s retirement age policy, you can only start receiving your full payment at age 70. But the FRA is 67 years old.
Your payments will continue to increase by 8% if you postpone over the age of 67 until you hit a cap at age 70, after which you will no longer get benefits. You don’t get any less money if you file at age 67 than if you file between ages 62 and 67.
Various FRAs based on the year of your birth
The fact that FRA ages now vary based on one’s birthdate only serves to further complicate and hurt beneficiaries. The current FRA age of 67 is applicable to everyone born in 1960 or later.
The new FRA age was introduced gradually, though, as the FRA age of 67 was only introduced in 1983; as a result, different birth years have varying FRAs. The FRA was 65 when the SSA was first created, but it was raised to address financial issues.
Read Also: Big Change Coming to License Plates After Four Decades, DMV Confirms
Your FRA is 66 if you were born between 1943 and 1954. The FRA for those born in 1955 is 66 years and 2 months. Your FRA is 66 years and 4 months if you were born in 1956.
Your FRA is 66 years and 6 months if you were born in 1957. Your FRA is 66 years and 8 months if you were born in 1958.
Lastly, the FRA for people born in 1959 is 66 years and 10 months. The greatest return can be obtained if you can postpone your benefits till you are 70 years old.
