Why retirement age matters for Social Security and Medicare

March 19, 2023 at 10:59

All these ages are important when it comes to Social Security and Medicare.
Many folks may think that people can start collecting their full Social Security benefits at age 65, which was the retirement age for decades.
Lawmakers gradually increased the full retirement age – the first to be affected were people who turned 65 in 2003.
However, unless Congress acts, neither Social Security nor Medicare will be able to provide their full benefits within the next decade or so.
Raising the full retirement age is a mechanism for cutting benefits.”Delaying retirement benefits is a hot-button topic not only in the US but in Europe as well.
Here’s what you need to know about retirement ages in the USAge 62: Americans can file for Social Security benefits as early as age 62.
For instance, those whose full retirement age is 67 will receive only 70% of the benefit if they claim at age 62.
Age 65 was also the average age of people electing Social Security benefits in 2021 – 65.1, to be precise, according to the academy.
Age 67: Americans born in 1960 or later must wait until age 67 to be eligible for their full Social Security benefits.
Doing so could wipe out about a third of the Social Security trust fund’s 75-year deficit, according to Munnell.
Age 70: Those who delay their retirement until age 70 will receive a larger monthly Social Security benefit, thanks to a credit Congress created in 1972.
Few people delay collecting their Social Security benefits, though the share is growing.
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