Here’s what you need to know about retirement ages in the US
Age 62: Americans can file for Social Security benefits as early as age 62. But that will result in a lifetime reduction in payments.
For instance, those whose full retirement age is 67 will receive only 70% of the benefit if they claim at age 62.
If the full retirement age is increased, it could mean an even larger cut in benefits, depending on how the legislation is written.
Congress gave women the ability to collect a reduced benefit at age 62 in 1956 and extended the option to men in 1961.
Fewer people are filing for early retirement benefits. Some 25% elected to do so in 2021, down from 52% in 2005, according to an American Academy of Actuaries review of Social Security Administration data.
Age 65: This is when one can enroll in Medicare coverage. Most people sign up for both Part A, which covers hospitalizations, skilled nursing facility care, hospice care and some home health care, and Part B, which covers doctors’ visits, outpatient care, medical supplies and preventive services.
The initial enrollment period begins three months before one turns 65 and ends three months after one’s birthday month. Those who wait to sign up can face hurdles, including having to pay a penalty or suffering from a gap in coverage.
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.
This age is typically the target of reforms, with some options raising it to age 70 for future retirees. Doing so could wipe out about a third of the Social Security trust fund’s 75-year deficit, according to Munnell.
Raising the full retirement age would bring it more in line with changes in life expectancy, which has increased by about six years since Social Security was established in 1935, said Linda Stone, senior pension fellow at the academy.
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.
For instance, workers born in 1960 can receive 124% of their benefit if they don’t sign up until they turn 70.
However, waiting beyond that age will not further increase their monthly payments, so the Social Security Administration recommends folks apply when they hit 70, even if they are still working.
Few people delay collecting their Social Security benefits, though the share is growing. Some 21% elected to take benefits after their full retirement age in 2021, up from 5% in 2005, according to the academy.
