If you plan on retiring next year, double check your calculations. That’s because a law passed in the 1980s raises the age at which Americans can receive their full Social Security benefits each year. And next year will be no exception.
In 1983, Congress passed a law that gradually raised the age at which people could receive 100% of their Social Security benefits. This increase is intended to be in line with increases in life expectancy.
According to the Social Security Administration, your full retirement age is determined by your years of service and your annual earnings during your active years.
Most Americans consider the typical retirement age to be 65, but that age is steadily rising.
The law raised the age for people born after 1938, Social Security officials said. Retirement age has increased by two months for each subsequent birth year.
Starting in 2023, for example, if you were born in 1957, you will reach full retirement age and be eligible to receive your full Social Security benefits at age 66 years and 6 months. If you were born in 1958, you must be 66 years and 8 months old to receive your full benefit in 2024.
Next year, the full retirement age will rise again by two months. People born in 1959 must be 66 years and 10 months old to receive full benefits.
The retirement age for people born after 1960 will jump to 67.
Social Security recipients can claim benefits earlier than their designated full retirement age. You can start receiving benefits as soon as you turn 62, but the amount will be significantly reduced, by about 25% if your full retirement age is 66 and by 30% if you are 67.
If you wait until you’re 70 to start receiving benefits, you’ll get more benefits.
To find out when you can claim your full retirement benefits or how much you can claim if you retire early, use the Social Security Online Calculator.
