Are you nearing retirement age? If so, there has been a change made to Social Security that might impact you.
The biggest change went into effect on January 1, 2017. The full retirement age was raised to 67. This is the age at which a person may first become entitled to full or unreduced retirement benefits.
Full retirement age has been slowly climbing since President Reagan signed the Social Security Administration Amendments of 1983. The full retirement age is now 67 for anyone who was born after 1960.
No matter what your full retirement age is, you may start receiving benefits as early as age 62 and as late as age 70. If you start collecting benefits early, they are reduced a fraction of a percent for each month before your full retirement age.
This chart, from the Social Security Administration, lists age 62 reduction amounts and includes examples based on an estimated monthly benefit of $1,000 at full retirement age:
With modifications being made to Social Security benefits, we're going to give you some ideas on how to plan for retirement.
We also found some terrific online calculators that do the heavy lifting for you too later on in this tip!