2017 Brings New Changes to Full Retirement Age
Reading Time: 2 MinutesLast Updated: August 19, 2021
Every worker’s dream is to enjoy a secure retirement. Social Security is here to secure today and tomorrow. Part of that commitment is ensuring you have the most up-to-date information when you make your retirement decisions.
As the bells ring in the New Year, they also bring changes for new Social Security retirement beneficiaries. Full retirement age is 66 and two months for people born 01/02/1955 through 01/01/1956. They are eligible to receive permanently reduced retirement benefits when they turn 62 in 2017.
Full retirement age is the age at which a person first becomes entitled to full (unreduced) retirement benefits. It had been 65 for many years. However, beginning with people born in 1938 that age has been gradually increasing until it reaches 67 for people born in 1960 and later.
As the full retirement age continues to increase, there are greater reductions in benefits if you claim them before you reach full retirement age. For example, if you apply for benefits in 2017 at age 62, your monthly benefit amount will be reduced nearly 26 percent.
You can find your full retirement age, along with other important information, on our website.
Some things you must remember when you’re thinking about retirement:
- You may start receiving Social Security benefits as early as age 62 or as late as age 70. The longer you wait, the higher your monthly benefit will be.
- Your monthly benefits are reduced permanently if you start them any time before full retirement age.
- If you die, your retirement date can affect the payment to your surviving widow or widower. If you started receiving retirement benefits before full retirement age, we cannot pay your surviving spouse their full retirement age benefit amount. We base their benefit on the amount of your reduced benefits.
- If you elect to receive benefits before you reach full retirement age, you should understand how continuing to work affects your benefits.
You can learn more by reading our publication, When to Start Receiving Benefits or visiting our Retirement Planner.
Did you find this Information helpful?
Tags: full retirement age, retirement benefits, Social Security benefits
See CommentsAbout the Author
Jim Borland, Assistant Deputy Commissioner, Communications
Jim Borland, Assistant Deputy Commissioner, Communications
Comments
Comments are closed.
Richard
If I file for early retirement, will my wife’s monthly SSI-disabilty income be affected?
R.F.
Thank you for your question Richard. Keep in mind that the Supplemental Security Income (SSI) program, is a needs based program that gives cash assistance to disabled individuals with limited income and resources. The amount of SSI benefits is based, in part, on the income and resources available to the individual. For SSI eligibility, we will take into consideration any income and resources available to you, as the spouse. Meaning, we will take into account your income and resources when figuring out your wife’s SSI monthly benefit amount. In addition, if your wife is eligible for spouse’s benefits on your record, she is required to apply as soon as she becomes eligible. Failure to apply for additional benefits will result in suspension or termination of her SSI benefits. Please visit our web page: “Understanding Supplemental Security Income” for more information.
Dorothy G.
I am 63. Plan to retire from my job effective September 1, 2017. I want to start receiving social security benefits after I retire, when should I apply.
R.F.
Thank you for your question Dorothy. Our system is set up to take applications three months in advance. Remember that Social Security benefits are paid the month after they are due. So, for instance, if you want your retirement benefits to begin with the month of September, you will receive your first benefit payment in October. When you are ready, you can complete the online application for your Social Security retirement benefits in as little as 15 minutes. Also, you can create a My Social Security account to review your earnings record and get an estimate of your future benefits. You can also apply in person at any Social Security office or by calling our toll-free number, 1-800-772-1213 for assistance. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Happy planning!
Marilyn G.
(What I meant…)
Why would someone choose NOT to sign up for full retirement SS at age 66 while they are still working full time?
A.C.
Hi, Marilyn. Thanks for your questions. There are many factors that go into deciding when to retire. For helpful information on how retiring early or later can affect an individual’s benefits, please visit our webpage, Retirement Planner: Plan For Your Retirement. Individuals can also use our Online Retirement Estimator to get estimates of their future retirement benefits. Regarding your disability benefits; Social Security disability benefits, paid under the Social Security Disability Insurance (SSDI) program, automatically convert to retirement benefits when individuals attain their Full Retirement Age. Generally, the benefit amount remains the same. We hope this helps.
Marilyn G.
Why would anyone NOT choose full retirement SS at age 66?
Also, I have SS from a disability but will be 65 in May. Do I need to do anything or does my SS remain the same?
Thank you
Barbara
I want to make sure I’m filing properly for spousal benefits… my husband is 67 and filed then suspended his benefits in Nov. 2015. I will turn 66 in two months, at the end of May. My understanding is that if I ask for spousal benefits to begin at my full retirement age at that time, I can do so because my husband filed/suspended before the new rules took place in April 2016 and because my birthdate is prior to January 1954. I also understand that I will continue to receive my spousal benefit of 50% of my husband FRA benefit until age 70 or a previous date if I decide to file earlier. Is all this correct?
A.C.
Hi, Barbara. You are correct. The new rules will not affect individuals who have already suspended their benefits before April 30, 2016. Also, since your spouse’s request was before April 30th 2016, your entitlement as a spouse after that date will not be affected by the new rules and you will receive payment. Also, since you turned 62 prior to January 2, 2016, the new law that extends deemed filing rules to benefits at full retirement age and beyond will not apply to you. For more information about these filing strategy changes and spouse’s benefits, please visit our webpage, Retirement Planner: Deemed Filing For Retirement And Spouse’s Benefits Frequently Asked Questions.
Angela
My husband pass away at a early age. Can I received his
spouse benefit now or do I have to wait until his 62 birthday. He was born in 1959. Also my retirement age is
not until the age 65 0r 66 because I too was born in 1959.
And when I start receiving my benefit will it be the full amount. And will his benefit still come to me
R.F.
Hi Angela, if you are the widow of a person who worked long enough under Social Security, you can start receiving reduced benefits as early as age 60 (50 if disabled). Your survivor benefit amount would be based on the earnings of the person who died. You cannot apply for survivors benefits online at this time. If you need to apply for benefits, call 1-800-772-1213 (TTY 1-800-325-0778). You can speak to a Social Security representative between 7 a.m. and 7 p.m., Monday through Friday. You can also contact your local Social Security office. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to speak to someone. We hope this information helps.
Sue R.
I will be 66 Jan 2018 and plan to continue working full time and draw my social security benefits. Can I also draw portion husband’s social security benefits. He is still living.
R.F.
Thank you for your question Sue. If you were born between 1943 and 1954, your full retirement age is 66. Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn. In addition to that, you can receive full retirement benefits on your own record or receive half of your husband’s. Generally, if you qualify and apply for your own retirement benefits and for benefits as a spouse, we always pay your own benefits first. If your benefits as a spouse are higher than your own retirement benefits, you will get a combination of benefits equaling the higher spouse benefit. However, if you turn 62 before January 2, 2016, and you file for benefits at full retirement age or later, you may also restrict your application to apply only for spouse’s benefits and delay filing for your own retirement in order to earn delayed retirement credits. We hope this information helps!
Kim
Is it true that before changes made in the last couple years; a spouse could collect a spouse benefit before their own retirement age? example; husband is 68 and starts collecting SS. Wife is 55 at this time and starts collecting spouse benefit.
Terry
I am 66 born 1950 so I am at full retirement age. I am also working full time and collecting my social security benefits. Is my social security counted as income and taxed?
R.F.
Great question Terry. Everyone working in covered employment or self-employment regardless of age or eligibility for benefits must pay Social Security taxes. Generally, if you continue to work while receiving retirement benefits, your monthly benefit amount could increase. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. Also, some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040.
chris s.
The company I have worked for has closed down as of Dec 2016. Haven’t yet found work in my profession but I’m am submitting resumes for this type of employment. I’m a young and physically able 65 now and will be 66 this year. I’m drawing unemployment at this time and if I continue to draw it when I reach 66, would this affect my Social Security benefit when i apply. If I haven’t been rehired in the job market and still collecting unemployment benefit. Would this affect my situation in any way?
A.C.
Hello, Chris. Thanks for your question. Unemployment insurance benefits are not counted under the Social Security annual earnings test and therefore do not affect your receipt of Social Security benefits. For more information about receiving Social Security and unemployment at the same time, visit our Frequently Asked Questions. We hope this helps