What age can you start collecting Social Security? This is a question that many individuals ponder as they approach retirement age. Understanding the rules and regulations surrounding Social Security benefits is crucial for making informed decisions about when to begin collecting these benefits.
Social Security benefits are designed to provide financial support to individuals once they reach a certain age. The age at which you can start collecting Social Security benefits is known as your Full Retirement Age (FRA). The FRA varies depending on the year you were born, with most individuals falling into one of three categories: those born between 1943 and 1954, those born between 1955 and 1960, and those born in 1960 or later.
For those born between 1943 and 1954, the FRA ranges from 65 to 67 years old. Individuals born in 1943 can start collecting Social Security at the age of 65, while those born in 1954 can begin collecting at the age of 66. For those born between 1955 and 1960, the FRA gradually increases by two months each year, with individuals born in 1955 being eligible to start collecting at the age of 66 and two months, and those born in 1960 being eligible at the age of 66 and eight months.
For individuals born in 1960 or later, the FRA is set at 67 years old. This means that individuals born in 1960 or later will not be able to start collecting Social Security until they reach the age of 67.
However, it’s important to note that you can start collecting Social Security benefits as early as age 62, but doing so will result in a reduced monthly benefit. This reduction is permanent and cannot be reversed. The exact reduction depends on your FRA, but it typically ranges from 5% to 7.5% per year for each month you collect before reaching your FRA.
On the other hand, if you wait until after your FRA to start collecting Social Security benefits, you may be eligible for an increased monthly benefit. This increase is known as delayed retirement credits and is calculated based on the number of months you delay collecting benefits beyond your FRA. For each month you delay, your benefit increases by a certain percentage, which varies depending on your year of birth.
In conclusion, the age at which you can start collecting Social Security benefits depends on your birth year and your Full Retirement Age. While you can start collecting as early as age 62, it’s important to consider the potential reduction in monthly benefits. Waiting until after your FRA may result in a higher monthly benefit, but it’s essential to plan accordingly and understand the long-term financial implications of your decision.
