Understanding Your Social Security…What’s Age Got To Do With It?

When you begin to think seriously about taking your retirement benefits,those conversations that you overheard at the pharmacy or in the church parlor will begin to pepper your mind with questions about age requirements and Social Security benefits.  So,what are the important ages associated with Social Security retirement benefits?

AGE 62

This is the earliest age at which anyone can begin to receive Social Security retirement benefits.

Although the full retirement age has been changed,you can still begin benefits at 62.  The benefit that you will receive at age 62 is reduced and stays permanently reduced.  If you retire at age 62,your benefit would be about 25 percent lower than what it would be if you waited until you reach your full retirement age.

AGE 65

Age 65 is the age at which entitlement to Medicare begins for retired workers.  Although the full retirement age has been changed to increase until it reaches age 67,Medicare is still available at 65.  If you are already getting Social Security benefits when you turn age 65,your Medicare starts automatically.  If you are not getting Social Security,you should sign up for Medicare before your 65^th birthday,even if you are not ready to retire.

AGE 67

While the full retirement age is 65 for people who were born before 1938,Social Security law was changed to gradually increase the full retirement age until it reaches age 67.  This change affects people born in 1938 and later.  You will receive the full amount of the benefit you are due,when you begin benefits at your full retirement age.  To find your full retirement age,visit http://www.socialsecurity.gov/retire2/retirechart.htm .

AGE 70

You may choose to keep working even beyond your full retirement age before taking benefits.  If you do,you can increase your future Social Security benefits in two ways.

Each additional year you work adds another year of earnings to your Social Security record.  Higher lifetime earnings may mean higher benefits when you retire.

Also,your benefit will increase automatically by a certain percentage from the time you reach your full retirement age until you start receiving your benefits or until you reach age 70.  The percentage varies depending on your year of birth.  For example,if you were born in 1943 or later,we will add 8 percent per year to your benefit for each year that you delay signing up for Social Security beyond your full retirement age.  To find out more about how delaying your retirement could increase your benefit go to http://www.socialsecurity.gov/retire2/delayret.htm .  Be sure to remember to sign up for Medicare at age 65 even if you continue to work because in some circumstances,medical insurance costs more if you delay applying for it.

Your Social Security benefit payment is affected by the age at which you decide to retire.  Billie Burke said that “age is something that doesn’t matter,unless you are a cheese”,but in matters of Social Security retirement planning,you can see that age does matter a great deal.