Delayed Retirement | Born in 1955 (2024)

FAQs

When can I get full retirement if I was born in 1955? ›

Currently, the full benefit age is 66 years and 2 months for people born in 1955, and it will gradually rise to 67 for those born in 1960 or later. Early retirement benefits will continue to be available at age 62, but they will be reduced more.

Delayed Retirement Credits increase your monthly Social Security benefit by a certain percentage for each month you delay taking benefits past your full retirement age, up to age 70. The percentage of the increase depends on your year of birth - it's 8% per year for those born in 1943 or later.

You can claim Social Security at age 69 and receive your full retirement age benefit plus three years' worth of delayed retirement credits or you can request a lump sum payout of six months of retroactive benefits.

Figure 1: BREAKING EVEN.

Want Social Security income starting after you turn 62? Fine, but by age 78 and 8 months, waiting until full retirement age will result in more lifetime earnings. If you can hold out until age 70 to begin drawing Social Security, age 82 and 6 months becomes the magic breakeven number.

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.

What is the disadvantage of late retirement? You will want to have a few years to enjoy retirement before you find yourself dealing with serious health issues. So if you're beginning to have health issues or have concerns because of your family history, delaying retirement could be a mistake.

How Delayed Retirement Credits Work. You can calculate your delayed retirement credits by multiplying the months you delay claiming Social Security benefits by 0.667 (approximately two-thirds). Using this base number, a 12-month delay will render an 8% annual boost in benefits.

In some cases, it can decline for months or even years. As a result, some retirees like to use a 3 percent rule instead to reduce their risk further. A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year.

If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.

What happens if you don't have enough credits to retire? ›

You can still earn credits and become fully insured if you work. We cannot pay you benefits if you don't have enough credits. This fact sheet will tell you more about earning credits to qualify for benefits and how both the number of years you work and how much you earn affect your benefit amount.

Your spouse may have postponed or plan to postpone their retirement to increase their monthly benefit amount by earning delayed retirement credits. However, your maximum spouse's benefit remains 50% of their full retirement age benefit, not their higher amount including delayed retirement credits.

Social Security retirement benefits are increased by a certain percentage for each month you delay starting your benefits beyond full retirement age. The benefit increase stops when you reach age 70.

If you wait until May to take your benefits, you'll get 100.7% of your full retirement benefit. Wait one year and you'll get 108% of your benefit. You can earn delayed credits until age 70, when you'd receive 132% of your full retirement benefit.

The $22,924 Social Security bonus most retirees completely overlook.

For women born before 06 April 1950 your State Pension Age is 60, if you were born after 05 April 1955 it is 65. However from 2024 a women's State Pension Age will increase in line with a male's. Please be aware the dates these ages change are subject to change by the Government.

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

How much can you earn and still get benefits? later, then your full retirement age for retirement insurance benefits is 67. If you work, and are at full retirement age or older, you may keep all of your benefits, no matter how much you earn.