What is full retirement age for someone born in 1955?
The concept of full retirement age is a crucial factor in determining when individuals can begin receiving Social Security benefits. For those born in 1955, understanding their full retirement age is essential for planning their financial future and making informed decisions about when to start collecting Social Security. In this article, we will explore the full retirement age for someone born in 1955 and discuss the implications it has on their retirement benefits.
The Social Security Administration (SSA) has established a specific age at which individuals can receive full retirement benefits, known as full retirement age. For individuals born in 1955, the full retirement age is gradually increasing from 65 to 67, depending on the year of birth. This change is part of the Social Security Amendments of 1983, which aimed to ensure the long-term sustainability of the Social Security program.
For those born in 1955, the full retirement age is 66 years and 2 months. This means that individuals born in 1955 can start receiving their full retirement benefits at the age of 66 years and 2 months. However, it is important to note that individuals can choose to start receiving Social Security benefits as early as age 62, but doing so will result in a reduced monthly benefit.
The reduction in monthly benefits for early retirement is calculated using a formula that takes into account the individual’s full retirement age. For each month an individual claims Social Security benefits before reaching their full retirement age, their monthly benefit is reduced by a certain percentage. This reduction is permanent and affects the individual’s total benefits over their lifetime.
On the other hand, if individuals wait until after their full retirement age to start receiving Social Security benefits, they can receive an increased monthly benefit. This increase is known as delayed retirement credits and is calculated at a rate of 8% per year, up to a maximum of 8% for each year beyond full retirement age.
Understanding the full retirement age for someone born in 1955 is vital for individuals to make informed decisions about their retirement planning. By knowing when they can receive their full retirement benefits, individuals can determine the best time to start collecting Social Security and optimize their financial well-being in retirement.
In conclusion, for individuals born in 1955, the full retirement age is 66 years and 2 months. This information is crucial for planning retirement and making decisions about when to start collecting Social Security benefits. By understanding the implications of full retirement age, individuals can ensure they make the most of their Social Security benefits and secure a comfortable retirement.
