You can start receiving retirement benefits from Social Security at age 62 up to age 70. According to the Social Security Administration, you are entitled to full benefits when you reach your normal retirement age or “full retirement age.” Learn more about when you can withdraw Social Security benefits.
Full Retirement Age
For anyone born after 1937, the full retirement age ranges from 65 to 67 years old, depending on your birth date. If you were born between 1937 and 1942, your full retirement age is 65. If you were born after 1942, your retirement age is 66 or 67. Here are the ages at which you can receive full Social Security retirement benefits.
Age for full Social Security retirement benefits
| Year of Birth | Full Retirement Age |
|---|---|
| 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 or later | 67 |
Receiving Social Security Benefits Early
If you begin receiving Social Security benefits at age 62, your monthly amount may be reduced by up to 30%. Benefits increase each year you delay receiving Social Security after reaching full retirement age, and the increases stop at age 70. You can work while receiving Social Security benefits, but working will reduce your benefits before reaching full retirement age. You can use the Social Security website to calculate the best time to start collecting benefits.
Waiting to Receive Social Security Benefits
If you defer receiving Social Security benefits until after reaching full retirement age, you will receive a benefits credit that increases the amount you receive when you begin to collect. However, this increase stops when you reach age 70. For example, if your full retirement age is 67, you will receive an 8% increase for each year you delay receiving your benefits until you reach age 70. However, if you delay receiving your benefits, you still need to apply for Medicare before age 65. You can start the process during the initial enrollment period. This period lasts for seven months: three months before your 65th birthday, the month of your 65th birthday, and three months after your 65th birthday.
If you miss the initial enrollment period or do not enroll in Part B of Medicare because you have coverage through work or a spouse, you may have opportunities to enroll later.
Note: If you do not enroll in Part B of Medicare during your initial enrollment period and do not have other coverage, you may be penalized by 10% for each year you delayed enrollment when you do enroll.
How Does Working Affect Social Security Benefits?
You can receive Social Security benefits and work at the same time – you can collect them at age 62 whether you are working or not. However, if you collect benefits before reaching full retirement age, your benefits will be temporarily reduced by $1 for every $2 you earn over $18,960 per year in 2021. If you work during the year you reach full retirement age, $1 will be deducted from your benefits for every $3 you earn over the upper limit (which is $50,520 in 2021), but only when calculating earnings before the month you reach full retirement age.
Once you reach full retirement age, you can receive your benefits with no limits on your earnings. Any withheld earnings while working will also be refunded to you.
When
When should you start receiving Social Security benefits?
There is no recommended age set by the Social Security Administration for starting to receive benefits. The decision is entirely up to you. You will receive a lower amount if you start early, or a larger benefit if you wait until age 70. You can calculate the difference on the Social Security website. You may receive a larger amount over your lifetime if you wait, but that may not be as important as receiving income now, especially if you can no longer work for health reasons. Ultimately, the right age depends on your financial situation, work, and health.
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Sources:
- Social Security Administration. “Retirement Benefits,” pages 3-4.
- Social Security Administration. “Receiving Benefits While Working.”
- Social Security Administration. “Normal Retirement Age (NRA).”
- Social Security Administration. “Social Security Benefits – Early or Delayed Retirement?”
- Social Security Administration. “Contacting Social Security by Phone.”
- Medicare.gov. “Enrollment Periods for Part A and Part B.”
- Medicare.gov. “Late Enrollment Penalty for Part B.”
- Social Security Administration. “2021 Social Security Changes Fact Sheet,” pages 1-2.
Source: https://www.thebalancemoney.com/when-can-i-start-receiving-social-security-benefits-2894602
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