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Basic Social Security Concepts & Fundamentals

Full Retirement Age (FRA): age at which you will eligible for 100% of benefits and is based on date of birth.
Year of Birth FRA
1943-1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67

(If born Jan. 1, the SSA figures benefits as if born the previous year.)

The Social Security Administration stopped sending statements via USPS in 2013. Anyone over the age of 60 still receives their Social Security statement in the mail.  Everyone must now check your statement online.  WE RECOMMEND EVERYONE CHECK THEIR STATEMENT ANNUALLY by visiting ssa.gov/mystatement

Benefits Change Depending On When Filed

  1. FRA: receive full benefits and is the most straightforward option
  2. Before FRA:  benefits can be received as early as the first full month of age 62 but at a reduced rate.  Benefits are reduced a fraction of a percent for each month before FRA. Taking your benefit at age 62 triggers a 25% reduction in your FRA benefit.
  3. After FRA:  For every month after FRA, the amount of benefits received will increase (up to age 70).  Delaying benefits can trigger an 8% increase per year.

 

What Option To Take

There are many factors to consider.  One of the most important is life expectancy – how long your expect to live.

Life Expectancy Probability for Those Who Reach Age 65
MALE FEMALE COUPLE
50% chance of living to age 85 50% chance of living to age 88 50% chance of one of you living to age 92
25% chance of living to age 92 25% chance of living to age 94 25% chance of one of you living to age 97

Source:  American Society of Actuaries, data based on non-smoking individuals

We can review your filing options with you, working while receiving benefits and basic tax considerations. Contact Us!