The age when you can receive complete Social Security has increased, and it is already affecting thousands of people who are about to retire soon.
The full retirement age to receive complete Social Security benefits has been increased, and this year, the recent change will impact those born in 1959. They now have to wait for a few more years to receive their full Social Security checks.
Social Security Administration (SSA) is raising the retirement age bar(AFP)
The age at which Americans receive full Social Security benefits is slowly increasing now, and that is affecting millions of people who are future retirees. This year, it impacts those born in 1959 as the age bar when they get to receive full benefits has been raised to 66 years and 10 months.
Where does this age slab increase stem from?
The increase in the age at which people are due to receive full Social Security benefits is being implemented by the government, citing a law passed in 1983. It mentioned that life expectancy is the key to determining at which age retirees are slated to receive full benefits. According to the SSA website, “In 1983, Congress passed a law to gradually raise the age because people are living longer and are generally healthier in older age.”
The SSA is clear on the fact, “You are entitled to full benefits only when you reach your full retirement age.” Those who try to claim their benefits earlier than their FRA could face a major reduction of up to 30%.
Is there any advantage in waiting for your FRA?
There are certain advantages in waiting for your scheduled FRA. For starters, each year a potential retiree waits for their FRA, the payout increases significantly each year.
