The Age for Retirement Benefits
Retirement requires a significant amount of planning. Your budget, living situation, goals and retirement age all make an impact on your happiness as a retiree. Whether your retirement is in the distant future or just around the corner, understand the role of Social Security to get a real handle on what you can and can't afford, and to make important decisions about when to retire and start receiving benefits.
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Description
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The Social Security Administration (SSA) pays a monthly retirement benefit to those who are 62 or older and have worked long enough while paying Social Security taxes to qualify. Usually this equates to 10 years of work, or 40 retirement credits. Look at your Social Security statement to see how many points you've accrued. This document also indicates your estimated monthly retirement benefit, which is helpful in budgeting for retirement.
Statistics
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When the SSA was founded in 1935, paying benefits to retirees was its central purpose -- and this remains true today. The SSA paid retirement benefits to 34 million retired workers in September 2010. This accounts for about 70 percent of all beneficiaries under the Social Security system, followed by disability beneficiaries (18 percent) and beneficiaries of Survivor's Insurance (12 percent). The average monthly benefit paid to retired workers in September 2010 was $1,172.
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Retirement Age
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You may apply for retirement benefits as early as 62, but you'll receive a reduced benefit if you start at that age; your benefits must stretch over a longer period of time. Your full retirement age, meaning the earliest you can collect benefits without seeing a reduction in your monthly benefit, varies depending on your birth date. If you were born in 1942 or earlier, your full retirement age is 65. If you were born between 1943 and 1959, your full retirement age is 66. If you were born in 1960 or later, your full retirement age is 67.
Considerations
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Choosing the age at which you'll begin to receive retirement benefits is a big decision. While the overall Social Security benefit you receive over your lifetime won't vary depending on when you start collecting benefits, your monthly benefit will be lower if you collect early. Likewise, if you wait until later to collect benefits, your monthly benefit will be higher since it will coincide with a shorter period of time. You can also receive "delayed retirement credits" for waiting until age 70 to receive benefits, but you won't receive extra credits for waiting until after age 70.
Applying
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Before you reach retirement age (or the desired age at which you'd like to receive benefits), submit a retirement application to the SSA. You can do this online by clicking the link in the "Resources" section, or by calling 800-772-1213, or 800-325-0778 for the deaf or hard of hearing. Online services are available weekdays from 5 a.m. to 1 a.m., on Saturday from 5 a.m. to 11 p.m., and on Sunday from 8 a.m. to 10 p.m. The SSA's phone number provides round-the-clock information.
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References
Resources
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