The past two years have been very difficult for many people living in the United States of America. As a result of the COVID-19 pandemic, the country entered the greatest economic contraction it has had in history. As a result, the cost of living adjustment that the Social Security Authority of America has calculated for 2022 is the highest it has been in decades, that is almost 40 years.
Currently, it is sitting at 5.9% – this might entice lots of citizens of the United States of America to start receiving benefits from the Social Security Authority before their full retirement age – which leads to maximum social security benefits. This could result in one losing as much as 30% of their potential income from the Social Security Authority. This article will examine this phenomenon in more detail.
Minimum Retirement Age
Firstly, the Social Security Authority in America makes it possible for citizens, who have worked – at retirement age to receive Social Security income or benefits. The minimum retirement age is 62. This might sound like a viable option in terms of unemployment and inflation created by the COVID-19 pandemic. However, if citizens who are eligible start to receive their Social Security benefits before full retirement age – they can decrease their monthly payment amount by up to 30%, or nearly a third, according to News Break. Depending on your circumstances this might be quite undesirable.
Full Retirement Age
Full retirement age for those turning 62 in the year of 2022 is 67 – a figure which has been decreased by the social So, according to News Break – if you want to receive your standard social security payment or full eligible amount: “a percentage of average wages in the 35 years when their earnings were highest” you would wait until this full retirement age. If you receive your Social Security benefits after the age of 62 but before full retirement age, either 67 for those turning 62 in 2022 or 70 traditionally, you will still lose out and not receive your full standard income from the Social Security Authority in America. You will in this latter case, however, receive more than if you started receiving Social Security benefits at the age of 62. This is all as a result of early filling penalties, which according to News Break, compensates for those who put of receiving their Social Security benefits till their full retirement age – making things fair.
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