February 12, 2009

Can I still start my Social Security at 62?

Maybe you have heard that the retirement age is going up. That is true but only for full (unreduced) retirement benefits and only for people born after 1937. You can still start your Social Security benefits at age 62 if you meet all requirements, but the amount of your monthly benefit will be reduced permanently if you choose to start before your Full Retirement Age.

The longer you wait to start your benefits, the higher your monthly benefit will be. So the first thing you need to know is what your full retirement age (FRA) is and how much your benefits will be reduced if you retire at 62:

For birth years 1943-1954, FRA is 66 and reduction at age 62 is 25%

For birth year 1955, FRA is 66 plus 2 months and reduction at 62 is 25.83%

For birth year 1956, FRA is 66 plus 4 months and reduction at 62 is 26.67%

For birth year 1957, FRA is 66 plus 6 months and reduction at 62 is 27.50%

For birth year 1958, FRA is 66 plus 8 months and reduction at 62 is 28.33%

For birth year 1959, FRA is 66 plus 10 months and reduction at 62 is 29.17%

For birth years 1960 and later, FRA is 67 and reduction at 62 is 30%

You can start your benefits with any month after age 62. The longer you wait the less the reduction will be. If you delay past your full retirement age, your benefit will even higher, but more on that later!

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5 comments:

  1. AnonymousFebruary 12, 2009 at 10:16 PM

    Hi Diane,

    Thanks very much for starting this blog. Social Security (even more so than before) may be all that many folks have left after the stock market disasters, so I know readers will appreciate your guidance, ideas and insights!

    ReplyDelete
  2. AnonymousFebruary 12, 2009 at 11:02 PM

    This is great, Diane. I'm going to tell everyone about it.

    BTW, the reason I didn't take SS at 62 is the $1 for $1 earned reduction. I make more money by working, whether I want to or not.

    I'll call tomorrow w/my detailed question.

    Pam

    ReplyDelete
  3. AnonymousFebruary 13, 2009 at 8:22 AM

    Diane,

    Thanks for demystifying this topic. Gracious, it's very confusing. Thank goodness you can help us sort it out!

    ReplyDelete
  4. AnonymousOctober 19, 2009 at 10:02 AM

    IAM VERY CONFUSED ABOUT MY RETIREMENT SS AMOUNT. DO I WAIT OR CAN I TAKE MINE NOW AND THEN TAKE MHALF OM HUSBAND WHEN HE RETIRES AT 66

    ReplyDelete
  5. Diane OwensJanuary 18, 2010 at 7:24 PM

    Dear Anonymous: You did not say how old you are now, but if you are at least 62 you can apply now for your own retirement but they will be reduced permanently even if you wait to apply for spouse's benefits when your husband retires. If you want to receive your maximum benefits on your husband's record, you will need to wait until you reach your full retirement age.

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