The Social Security Retirement Age Increases in 2022

While you can get-go Social Security payments at age 62, your monthly checks are reduced if yous begin collecting benefits at this age. To claim your total benefit, you demand to sign up for Social Security at your full retirement historic period, which varies by birth year.

Here'south a look at how the Social Security retirement historic period is changing, and what this means for your retirement payments:

-- An older Social Security full retirement age.

-- A bigger reduction if you claim Social Security early.

-- Less of a benefit for delaying claiming Social Security.

-- The Medicare eligibility age remains the aforementioned.

-- Yous need to carefully determine the optimal age to start Social Security.

An Older Social Security Full Retirement Age

The full retirement age used to be 65 for those built-in in 1937 or earlier. Those born betwixt 1943 and 1954 take a full retirement age of 66. The full retirement age further increases in two-month increments each year to 66 and 10 months for those built-in in 1959, upward from 66 and eight months for those with a birth year of 1958.

The full retirement age for those who turn historic period 62 in 2022, born in 1960, is 67. The full retirement age will remain age 67 for everyone built-in in 1960 or later.

[Read: Social Security Changes Coming in 2022]

A Bigger Reduction If You lot Claim Social Security Early

Workers who are eligible for Social Security tin kickoff payments at age 62, regardless of their total retirement age. However, the benefit reduction for early claiming is bigger for those who accept an older retirement age.

"You become less if you commencement early or more if you delay until later on," says Andy Landis, author of "Social Security: The Inside Story." "Every month you delay Social Security upward to historic period 70 gets y'all a higher monthly payment for life."

Workers born in 1960 will see their monthly payments reduced by 30% if they sign up for Social Security at historic period 62, compared to a 29.17% do good reduction for those built-in in 1959 and a 25% decrease for those born in 1954. For a worker eligible for a $one,000 monthly Social Security benefit at his full retirement age, claiming at age 62 volition reduce his monthly payment to $750 if his nascency year is 1954 and $700 if he was born in 1960.

"Relative to an earlier full retirement age, a later full retirement age means that the person gets less money per calendar month regardless of when they file," says Mike Piper, a certified public accountant and writer of "Social Security Made Simple." Social Security's almanac price-of-living adjustments will be applied to these reduced payments, resulting in a smaller dollar value of the inflation adjustments too.

[READ: How Much You Will Get From Social Security.]

Less of a Benefit for Delaying Challenge Social Security

Y'all tin increase your monthly Social Security payments by delaying claiming Social Security after your total retirement age upwardly until age lxx. However, those who have an older retirement age take fewer months to delay challenge Social Security and less of an opportunity to earn delayed retirement credits.

"If a person files at age seventy, if they had a full retirement historic period of 66, that ways they waited 48 months beyond total retirement historic period, then they would get 132% of their main insurance amount," Piper says. "But if they file at 70 with a full retirement age of 66 and six months, that means they waited 42 months beyond full retirement age, so they would only get 128% of their primary insurance amount."

The Medicare Eligibility Historic period Remains the Aforementioned

While the Social Security full retirement historic period has increased over the past several years, the age when workers authorize for Medicare has remained age 65. Those who filibuster claiming Social Security until their total retirement age or later even so need to sign upwardly for Medicare at age 65 or maintain other group health insurance based on current employment to avoid hefty Medicare late enrollment penalties. While many retirees have their Medicare premiums withheld from their Social Security checks, those who enroll in Medicare before starting Social Security volition have to pay premiums out of pocket.

[See: 10 Ways to Increase Your Social Security Payments.]

Carefully Determine the Optimal Age to Showtime Social Security

Your age when you begin Social Security payments plays a large office in the amount you will receive throughout retirement. But regardless of your birth year, in that location are several ways to boost your monthly Social Security payments, including delaying claiming, continuing to work and coordinating benefits with a spouse.

"When to claim benefits should be something that people have the time to analyze and make sure they know the impact of their decision," says Angie Furubotten-LaRosee, a certified financial planner at Avea Financial Planning in Richland, Washington. "By delaying to at least full retirement age, right at present between 66 and 67, or even delaying until age lxx, people tin can increase the corporeality they will receive."

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