Retirement is a big step, and we want to make sure your transition is as smooth and stress-free as possible. Some may wonder what full retirement age is, as well as if you can retire early and still receive Medicare benefits. We’re here to answer all your retirement questions, including how to prepare for retirement.
What is Full Retirement Age?
Full retirement age is the age at which a beneficiary is entitled to receive the total allowance of Social Security benefits provided each month. The birth year determines Social Security’s full retirement age because people are living longer and therefore collecting more during retirement.
Although the full retirement age used to be 65, it is set to increase incrementally over a twenty-two-year period. Thus, for those born after 1959, the age will be 67.
Full Retirement Age 1956
The full retirement age for beneficiaries born in 1956 will be 66 years and four months. Thus, waiting until this age will allow you to claim 100% of your SSI benefit. Claiming early retirement at 62 will entitle you to 73.3% of the monthly amount. Retiring at 65 gets you a 91.1% monthly benefit.
Full Retirement Age 1957
Beneficiaries born in 1957 reach full retirement age at 66 and a half years. Meaning, SSI pays 100% of the benefit amount if you retire at this age. Retiring at 62 will get 72.5% of the monthly benefit, and at age 65, you’re entitled to 90% of the monthly benefit amount.
Full Retirement Age 1958
Claimants born in 1958 reach the average retirement age at 66 years and eight months and can expect to receive 100% of the monthly benefit. Early retirement at age 62 will get 71.7% of the monthly amount, and age 65 will get 88.9% of the monthly benefit amount.
Full Retirement Age 1959
Beneficiaries born in 1959 reach complete retirement at 66 years and ten months. It’s at this time you can retire and expect to receive 100% of your monthly benefit. Early retirement at age 62 will receive 70.8% of the monthly benefit, and age 65 will get 87.8%.
If You Retire Early, Can You Get Medicare?
How to Prepare for Retirement
Retirement is a huge milestone, and every decision you make matters. That’s why planning ahead and knowing when you’ll reach your your full retirement age is important . You may be wondering where to start, but don’t worry. We put together this checklist to help you get started:
- Start saving money and set financial goals
- Pay off as much debt as possible
- Contribute to your employer’s retirement savings program
- Understand your employer’s pension plan
- Explore your Social Security benefits
- Calculate your retirement expenses
Whether you’re retiring soon or in the next few years, it’s important to set realistic goals so your retirement can be as smooth as possible.