A vast majority of baby boomers will receive the full amount of their earned Social Security when they attain 66 years of age. However, those retirees who turn 62 years of age in 2017 must wait two more months to collect their Social Security payments in full. This is because from 2017, the retirement age has started to creep towards 67 years. This older retirement age impacts the quantity of money you will get from the Social Security.
Want full payment? Prepare to wait longer
The full retirement age for Social Security is 66 for individuals born anytime from 1943 to 1954. If a person is born five years after that period, the age of full retirement will increase in increments if two months from 66. Two months will also be followed for those born in 1955. For the 1959 born, it became 10 months. For people born in 1960 and in the latter years, the full retirement age is 67.
Early claims and larger reductions
All the retirees can start to collect reduced payment of Social Security when they attain 62 years of age. However, the more the full retirement age, the larger the benefit reduction in case you sign up for the Social Security on the 62nd birthday. A bigger reduction can be had when one claims at 62 years of age. Many months of reductions will follow in case a person's complete retirement age comes to 67 as compared to 66.
Waiting means smaller benefits
It is possible to increase the Social Security benefit per month by delaying the beginning of payments until you reach 70 years of age. The rise in the amount depends on the full retirement age. The largest bonus for delayed claims will go to those with lowest complete retirement age. The baby boomers who has full retirement age coming to 66 may increase the benefit of Social Security by 32 percent if they wait for four years until the age of 70 to sign up. With the increase in full retirement age, there is a reduced opportunity to earn the delayed retirement credits which increase the benefit.
Deciding the time to collect
When you sign up for Social Security early, you collect smaller amounts of money for a lengthier number of years. Those who make delay in claiming their Social Security will collect larger payments when they retire.