Here’s why retirement age matters for Social Security

Early retirement will permanently decrease Social Security payments
Published: Jul. 4, 2023 at 10:15 AM CDT
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(InvestigateTV) — The Social Security Administration (SSA) allows individuals to start claiming retirement benefits at age 62 but the monthly payout will be reduced by 25-30%, depending on age.

Full retirement age is when people are entitled to 100% of the Social Security benefits they have earned over their lifetime.

The Social Security Amendments of 1983 required the gradual increase in full retirement age over time.

Per the SSA, those born between 1943 and 1954 receive full retirement at age 66. After that, the full retirement age increases by two months each year. If you were born 1960 or later your full retirement age is 67.

The SSA retirement age table can be viewed here.

Retirees who choose to delay receiving Social Security benefits can qualify for delayed retirement credits that could boost benefits by 8% each year until 70 years old.

While Social Security is facing a shortfall, the latest projections show the program will collect enough to pay full retirement benefits through 2033, then 77% of scheduled benefits after depletion.

While Social Security benefits are an important part of any retirement plan, the government encourages Americans to invest in employer based retirement plans, such as 401ks and Individual Retirement Accounts.

The U.S. Department of Labor (DOL) has a Retirement Savings Toolkit available with comprehensive information and resources.