In 2019, the maximum payout for any beneficiary retiring at FRA was $2,861 per month.3
TIMING YOUR BENEFIT DISTRIBUTIONS Full retirement age (referred to as FRA) is age 66 for anyone born between 1943 and 1954. Beginning with those born in 1955, an additional two months is added to the full retirement age each year through 1959. If you were born in 1960 or later, full retirement age is 67. You may begin taking benefits starting at age 62, but they will be permanently reduced. Covered workers need 40 credits to be eligible for their own benefit, which works out to about 10 years of work history. Your benefit is calculated based on your average earnings over the highest-earning 35 years. Working up to full retirement age may increase your benefit while at the same time any contributions you continue to make to a 401(k) plan and/or investment portfolio will have more time to potentially accrue higher gains. If you begin drawing benefits before full retirement age, they are reduced as shown in the accompanying table.4
FULL RETIREMENT AND AGE 62 BENEFIT BY YEAR OF BIRTH
At Age 62 3
A $1,000 retirement be reduced to
The retirement reduced by 4
The spouse’s reduced by
A $500 spouse’s be reduced to
Months between age 62 and full retirement age 2
Full (normal) retirement age
Year of Birth 1
$375
1937 or earlier6
53
6$
800
20.00 %
25.00 %
1938
65 and 2 months 38
$791
$370
20.83 %
25.83 %
1939
65 and 4 months 40
$783
$366
21.67 %
26.67 %
1940
65 and 6 months 42
$775
$362
22.50 %
27.50 %
1941
65 and 8 months 44
$766
$358
23.33 %
28.33 %
1942
65 and 10 months4 6$
758
$354
24.17 %
29.17 %
1943-19546
64
8$
750
$350
25.00 %
30.00 %
1955
66 and 2 months 50
$741
$345
25.83 %
30.83 %
1956
66 and 4 months 52
$733
$341
26.67 %
31.67 %
1957
66 and 6 months 54
$725
$337
27.50 %
32.50 %
1958
66 and 8 months 56
$716
$333
28.33 %
33.33 %
1959
66 and 10 months5 8$
708
$329
29.17 %
34.17 %
1960 and later
67
60
$700
$325
30.00 %
35.00 %
:3: This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency. 1. If you were born on Jan. 1, you should refer to the previous year. 2. If you were born on the first of the month, SSA figures your benefit (and full retirement age) as if your birthday was in the previous month. If you were born on Jan. 1, SSA figures your benefit as if your birthday was in December of the previous year. 3. You must be at least 62 years old for the entire month to receive benefits. 4. Percentages are approximate due to rounding. 5. The maximum benefit for the spouse is 50% of the benefit the worker would receive at full retirement age. The percentage reduction for the spouse should be applied after the automatic 50% reduction. Percentages are approximate due to rounding. 3 Social Security Administration. August 2019. “Fast Facts & Figures About Social Security, 2019.” https://www.ssa.gov/policy/docs/chartbooks/fast_ facts/2019/fast_facts19.pdf. Accessed Feb. 29, 2020. 4 Social Security Administration. “Retirement Planner: Benefits By Year of Birth.” https://www.socialsecurity.gov/planners/retire/agereduction.html. Accessed Feb. 29, 2020. This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency.
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