Is the Social Security Retirement Age Changing in 2019, Do you have a hard time in deciding on the best time to collect the benefits of 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:
Is the Social Security Retirement Age Changing in 2019
When you are going to initiate the process of applying to Social Security benefits at age 62, your checks on a monthly basis are decreased. If you want to claim the full benefit, then it is necessary for signing up with Social Security at the full retirement age, which is dependent on the date of birth. Start knowing how the full retirement age is going to change and what it implies for retirement payments.
The previous full retirement age for Social Security
In the past year, the full retirement age 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 the 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 Social Security is claimed earlier, then there will be a bigger reduction
Once you know the update, then you should also be familiar with 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 Social Security benefits is the age when you receive a 100% benefit and it is dependent on the birth year.
For people with the 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.
Must Read: Social Security FAQ’s
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 Social Security. In accordance with the latest update, one can increase his or her monthly payments of 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 denying 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 requires 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 Medicare. Make sure that you have everything in familiar and in your hands before going to claim for the benefits of Social Security. Visit the official website of the SSA to get more latest updates on the SS changes, COLA, and much more.