The original goal of Social Security was to retire at age 65. Shortly, that will become 67. You can bet that the next Congress will move it closer to 70. Social Security and Medicare are bankrupt. In less than five years both will hit rock bottom. But, the Democrats refuse to go the route needed—allow people to privatize their accounts. In fact they would make much more money—and the remaining money in their private account, when they diem will go to family, not the government.
“What is the new retirement age from January 1, 2025?
The earliest you can begin claiming retirement payments from the Social Security Administration (SSA) is once you’ve turned 62, but that will reduce you benefit amount by 30%. In 2024, those Americans who celebrated their 66-and-eighth-month birthday finally reached full retirement age. That’s when Social Security recipients can claim their full Old-Age benefits.
These people were born in 1958. However, those who were born a year later will have to wait until they are 66 and 10 months old, meaning only those born in the first two months of 1959 will be able to claim full benefits in 2025 without being penalized besides all who were born in earlier years.
All those who were born in 1960 and later won’t reach full retirement age until they turn 67. Note, people born on January 1 of any year, The SSA says they should refer to the previous year.
Goodbye to retirement age of 66 years and 8 months: here is the new retirement age from January 1, 2025
Given that every year the age when US retirees can begin to claim Social Security benefits without penalty has been getting higher, here’s what it is in 2025.
Greg Heilman, 12/09, Msn. https://www.msn.com/en-us/money/retirement/social-security-s-retirement-age-is-changing-here-s-who-s-affected/ar-AA1vygYO#:~:text=In%202025%2C%20the%20full%20retirement%20age%20will%20increase%20for%20many%20seniors.,-Ad&text=LendingTree-,Under%20next%20year’s%20rules%2C%20those%20born%20between%201943%20and%201954,to%20wait%20a%20bit%20longer.
The new year will bring a series of changes to Social Security. Every year the Social Security Administration announces a cost-of-living adjustment (COLA) which applies to beneficiaries’ payments starting with the disbursement that corresponds to January.
The increase this year was 2.5% which will also raise the amount contributors must earn for each Social Security credit, also known as a “quarter of coverage,” as well as the wage cap for Social Security taxes. Furthermore, beneficiaries will have to wait a little longer to reach full retirement age.
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What is the new retirement age from January 1, 2025?
The earliest you can begin claiming retirement payments from the Social Security Administration (SSA) is once you’ve turned 62, but that will reduce you benefit amount by 30%. In 2024, those Americans who celebrated their 66-and-eighth-month birthday finally reached full retirement age. That’s when Social Security recipients can claim their full Old-Age benefits.
These people were born in 1958. However, those who were born a year later will have to wait until they are 66 and 10 months old, meaning only those born in the first two months of 1959 will be able to claim full benefits in 2025 without being penalized besides all who were born in earlier years.
All those who were born in 1960 and later won’t reach full retirement age until they turn 67. Note, people born on January 1 of any year, The SSA says they should refer to the previous year.
You may be interested in:Social Security credit changes kicking in for 2025
The SSA allows Americans to apply for benefits up to 4 months before they plan to receive them. So, if you are thinking about claiming retirement benefits soon, even if still not yet ready to do so, it is recommended that you visit the SSA website on retirement benefits.
How to calculate the Social Security early retirement penalty
The Social Security Administration has a calculation for just how much your monthly Social Security payments will be permanently reduced from the primary insurance amount accumulated over the years you contributed depending on just how early you retire.
During the first 36 months, for every month that a beneficiary signs up to receive Social Security prior to full retirement age the primary insurance amount will be reduced by 5/9 of 1 percent, or around 0.55 percent. For each additional month beyond 36 months, the reduction is 5/12 of one percent, or a little less than 0.42 percent.
A person who was born in 1960 or later and that retires at 62 in the first month they eligible to begin receiving Social Security benefits will be 60 months short of full retirement age. That translates to a 30 percent permanent reduction to compensate for the extended number of months it is expected they’ll be collecting monthly payments.
