Social Security Has Reached Full Retirement Age of 67

Social Security Has Reached Full Retirement Age of 67

New reports say that starting this year, 2022, Social Security’s full retirement age has reached its maximum of 67 years old for those born in or after 1960.

The Social Security Amendments of 1983 created a provision for the retirement age to go up gradually from 65 to 67 over the course of a 22 year period, which kicked off in 2000. Now, in 2022, the age has gone up for future recipients.

via Washington Examiner:

People can begin collecting their Social Security benefits when they reach 62, with a penalty, however. When a retiree is more than three years away from turning 67, 5/9 of a percent along with an additional 5/12 of a percent will be deducted each month. When retirees are within 36 months of 67, their benefits are only reduced by 5/9 of a percent.

According to a report, a 62-year-old recipient’s benefits “would be reduced by 30%” per month.

Last year, the SSA announced a cost of living adjustment of 5.9%. An average retiree will see an increase of $92, for a grand total of $1,657 per month. Meanwhile, a couple’s likely monthly benefits rose by $154 to $2,754.

The adjustment is the highest COLA since 1982, when it was increased by 7.4%. The first COLA was instituted in 1975 by the SSA.

Almost 70 million people, which includes those who receive Social Security, disabled veterans, and federal retirees, will be impacted by this new adjustment. Somewhere around half of seniors report that Social Security benefits are at least half of their household income. Another 25 percent said they rely on their monthly benefits for almost their entire income.