Turning 62 in 2020? Social Security Will Pay You Less.
In 1983 Congress and President Reagan agreed to changes to make Social Security solvent for the longer term. One change that did achieve this end was increasing the full retirement age from 65 to 67 in two month increments over time. Whenever someone claims benefits before full retirement age, they are paid less per month than if they waited. For those turning 62 in 2020, the full retirement age will be 66 2/3, up from 66 1/2 for those who turned 62 in 2019. The cost of a two-month increase is $12.50 per month for someone who’d be entitled to a $1,500 monthly benefit at full retirement age based on their work history. While not a huge amount, losing $150 per year can add up to a big deal, especially if one does not understand the rules. Read the full article here by Dan Caplinger of The Motley Fool.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.