If you are one of those people who thinks every day “well, it’s one day less for my retirement” … We regret not bringing you good news. The United States retirement system is about to change and, as of January 1, 2025, the retirement age will be delayed for millions of workers (which will affect, of course, when and how much they receive from Social Security)
So, if you are already planning to retire or plan to delay your retirement, this information that we are going to give you below will be essential to help you make your decision.
What is the full retirement age?
Let’s go step by step, the full retirement age is the exact moment in which, upon retirement, you can receive 100% of the benefits on which you have based your income all your life, this parameter has been increasing depending on the year of birth of the requesting users.
- For those born in 1958, the retirement age is 66 years and 8 months
- For those born in 1959, this age increases to 66 years and 10 months (reaching 2025)
- For those born after 1960 or in 1960, the retirement age is set at 67 years.
As an extra fact, those people born on January 1st must use the previous year to determine their retirement age.
What if I want to retire early?
In the event that you opt for early retirement, you should know that you can request it from the age of 62, but that your payments will be permanently reduced by 30% of the total amount, so if you request to retire early, you will lose a large percentage of what you are entitled to.
What if I decide to delay my retirement?
In this case, Social Security is going to give you an “extra bonus” and that is, for every year that you postpone your retirement after age 67 (and up to age 70) your payments will increase annually by 8%, so it is a way to earn extra money if you don’t mind working for three more years
Who will earn more in 2025?
As we have said, people who work until age 70 will have an “extra”, but, in addition to these changes, the COLA (cost of living adjustment) can be included with 2.5% in monthly payments.
How will this affect retirees?
These adjustments reflect an effort to balance the system’s finances and adapt to demographic changes that are increasingly on the rise thanks to the quality of life we have achieved. Although the transition to a higher full retirement age may seem challenging, it also offers opportunities to maximize long-term benefits if retirement is delayed.
How do I find out how long until I retire?
It’s not because you really want to, it’s because planning for early retirement should be crucial in all jobs. You can easily find out your retirement age by accessing your account on the Social Security Administration website (you can enter by clicking here). Once you have registered your data, you will be able to see your income history, the work credits you have accumulated over these years and an approximate estimate according to the different retirement ages (early, full or late).
Not only that, but the SSA offers a benefit calculator so you can estimate the approximate amount of benefits you will get once you decide to retire.
So, even if you still have time to think about the golden years, don’t be caught out! Plan your retirement so that those years are special and peaceful. We all deserve to retire peacefully!