Retirement

2017 Brings New Changes to Full Retirement Age

January 6, 2017 • By

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Last Updated: August 19, 2021

3 elderly people siting on a stoopEvery 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:

  1. 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.
  2. Your monthly benefits are reduced permanently if you start them any time before full retirement age.
  3. 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.
  4. 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.

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About the Author

Jim Borland, Assistant Deputy Commissioner, Communications

Jim Borland, Assistant Deputy Commissioner, Communications

Comments

  1. Kelly

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  2. EBECK

    I AGREE, WHY WOULD YOU WANT AN ANSWER THAT IS NOT FROM SOCIAL SECURITY ADMIN!!!!!! ISN’T THAT THE REASON WE ARE ON THIS SITE FOR ANSWERS??? WASTE OUR TIME!!!
    BUT THANKS TO THOSE WHO FELT IT THEIR RESPONSIBILITY TO TRY TO HELP THOSE WITH QUESTIONS, YOUR APPRECIATED

  3. JUDITH F.

    Most of the responses do not indicate if the comment is from SSA officially or an individual. If the SSA person would identify himself as such, I would have more confidence in the comment

    • Ray F.

      Hi Judith, we have an official social media team dedicated to posting messages and responses to customer inquiries or comments that specifically address SSA issues. Please be aware that our official agency responses will always include the Social Security Administration (SSA) seal. Our blog — Social Security Matters — gives readers information about a variety of topics, including our programs, online services, current events, and human-interest stories, usually in greater detail than typically shared on our other social media platforms. Thank you for your support and for using our blog.

  4. Hyam k.

    How much were you allowed to make in 2014 before you retired.

  5. J M.

    Please reply back to me e mail address.

  6. J M.

    I am 64 years old. I started my SS Benefits in Jan of 2016 at a reduced rate. My birthday is Feb 13, 1952 which i will turn 65 and be eligible for Medicare Part A, B and D I have signed up for as well as a supplemental plan.

    I am working part time earning the max I can earn of $15, 750 annually in 2016 and going into 2017.

    I have an offer to take a high level role with a base salary of $130,000 plus bonuses in the nest two weeks. What will be taken out of my Soc Sec ( taxes) for dollars earned over the $15,750 should I accept this job? Would I be better off suspending my Soc Sec benefits if I take the job until I reach the age of 66 in Feb 2018 where I can earn any amount without being penalized?

  7. Jere N.

    The article title is -2017 Brings New Changes to Full Retirement Age. I did not read every word, but what are the changes being made in 2017?

  8. Tony S.

    Hospitals & Asylums

    In re: Social Security Amendments of January 1, 2017 http://www.title24uscode.org/ss2017.htm

    Section 24 To White House Office of Management and Budget

    a. The President is requested to submit the attached budget contents to Congress to report a $50 to $110 billion FY 2018 surplus depending on whether or not the rich are taxed to end poverty by 2020, in the first week of January to first week of February to Congress under 31USC§1105 and defend them in the State of the Union adress under Art. 2(3) of the US Constitution.

    1. Other Defense Civil Program and Allowances are not agencies instrumental to calculating Outlays by Agency under 31USC§101. To balance the federal budget the first thing that WHOM must do is to abolish the Other Defense Civil Programs row, deducting the amount from that year’s undistributed offsetting receipts before 2009, and the Allowances row, from White House Office of Management and Budget (WHOMB) historical outlays by agency table 4.1 to reduce the deficit and debt since 2009.

    2. Second, to calculate the total on-budget outlays WHOMB Outlays by Agency Historical Table 4.1 must make exact note of the federal outlays estimated by every agency in the annual congressional budget requests by the heads of the executive departments under Article 2 Section 2 of the United States Constitution that overrules any professional opinions regarding agency spending OMB might have.

    3. Third, agency budget proposals must be consistent with system-wide priorities for maintaining and improving the quality of federal statistics maintained by WHOMB under the Paperwork Reduction Act as codified at 44USC§3504(e)(2). A human rights case is needed to justify WHOMB to dispute agency federal spending estimates in their annual congressional budget requests.

    4. Fourth, after the deficit projection turns into an FY 2018 on-budget surplus, disregard off-budget undistributed offsetting receipts and take exact note of the off-budget social security revenues and expenditures reported in the Annual Report of the Federal Old Age Survivor Insurance Trust Fund and Federal Disability Insurance Trust fund in the off-budget to calculate total Revenues, Outlays, Surplus (or Deficit) in Table 1.1.

    5. Fifth, ask agency budget offices for their year by year opinions regarding the historical accuracy of the Historical Tables to express federal outlays made by their agencies. After all the agencies have reported their final opinions and WHOMB has preserved the old record for posterity, reduce the historical deficit and debt by being mathematically accurate.

    6. Sixth, account for new revenues in Historical Table 2.1. Tax gas, coal, oil and electricity exports 6% to better regulate hydrocarbon storage. Tax the rich the full 12.4 percent OASDI tax rate on all their income to increase off-budget revenues and expenditures by 130 percent.

    a. True on-budget outlays and deficit will be reduced by the $60 billion (2015-16) cost of SSI in Table 4.1 less the $20 billion + 2.5% annuity for the USPS = $40 billion deficit reduction.

    b. After the tax on the rich the Social Security on-budget row will have to be deleted and can be added into the historical Other Independent Agencies (on-budget) row that will be changed to Human Services (on-budget) to include Agency for Children and Families (ACF) and Agency for Community Living (ACL), Human Services outlays, to keep public health spending less than $1 trillion, beginning FY 2018.

    7. Seventh, taking into consideration the sustainability of the FY 2018 surplus, reevaluate the concept of undistributed offsetting receipts with low-income and corporate tax relief so that the surplus of the Historical Tables could be accurately maintained by the Presidential review of the Congressional Budget Submissions under Article 2 Section 2 of the US Constitution at no cost under 31USC§502.

    8. Eighth, future projections assume that cash welfare programs, TANF, SSI, OASDI etc., should budget for a 3% COLA to stay ahead of inflation, plus, in normal years beneficiary population growth of >1%, >104% of previous years costs. Federal spending on in-kind welfare programs like food stamps and housing assistance should grow 3% annually so population growth + average benefit growth = 3%. Budgets are calculated 3-4% low-income welfare program growth or 3.4% t-bond interest rate + 2.5% administrative, health, education and infrastructural spending growth = 2.5-3.3%
     
    a. Education and health are often considered welfare but overspending, particularly on health care, calls for regulation. Education spending growth, that fluctuates wildly, should be stabilized from the accurate year of FY 2017 at a rate of 3%, but US education spending is the second highest in the world, and the budget has fluctuated so wildly a 2.5% rate of growth is recommended until at least 2020. Health inflation needs be reduced to 2.5% until 2030 or when national health expenditures is less than 10% of GDP.
     
    a. Agency non-welfare and infrastructure spending is expected to grow around 2.5%. Raises in administrative, managerial and professional wages are estimated % raise + % new employees = 2.5%. 
     
    Be it enacted in the House and Senate assembled

    The snowflakes at the end of the rainbow have melted and I bought an umbrella. A 3% COLA is needed in 2017 and every-year hereafter for SSA to avoid perpetuating the cruel and unusual war of attrition in contempt of Sec. 215(i) of the Social Security Act 42USC415(i), Revelation 13:10, Art. 42 Dual Mandate, Art. 43 Law of Supply and Demand and Art. 48 Fair Wages of Chapter 6 Economic Law of the Constitution of Hospitals & Asylums Non-Government Economy (CHANGE) http://www.title24uscode.org/CHANGEXX.doc

    Art. 42 Dual Mandate

    The dual mandate for price stability and maximum employment also provides for a separation between the public and private sectors. Keynesian economics promotes a mixed economy, where both the state and the private sector play an important role. Keynesian economics comes in contrast to laissez-faire economics, economic theory based on the belief that markets and the private sector could operate well on their own, without state intervention. In Keynes’s theory, general (macro-level) trends can overwhelm the micro-level behavior of individuals, instead of the economic process being based on continuous improvements in potential output, as most classical economists had believed from the late 1700s on. Keynes asserted the importance of aggregate demand for goods as the driving factor of the economy, especially in periods of downturn. From this he argued that government policies could be used to promote demand at a macro level, to fight high unemployment and deflation.

    Art. 43 Law of Supply and Demand

    1. The Law of Supply and Demand provides that competition between consumers and producers brings the supply of goods and the demand for them into balance. This is Cardinal ‘law’ of free-market economic theory. Overproduction lowers prices, increasing demand; over consumption raises prices, reducing demand.

    2. Say’s Law provides that there can be no demand without supply. Thus aggregate demand equals aggregate supply. Thus every rise in the demand for goods results in an increase in supply. Recession therefore does not occur because of failure in demand or lack of money. The more goods that are produced, the more those goods can constitute a demand for other goods. For this reason, prosperity should be increased by stimulating production, not consumption. The creation of more money simply results in inflation; more money demanding the same quantity of goods does not represent an increase in real demand as stated by the French economist Jean-Baptiste Say in 1803.

    Art. 48 Fair Wages

    4. Iron Law of Wages states, that if wages rise above subsistence level, they produce inflation, which in turn forces wages down to subsistence level again. States and employers from time to make estimates as to the minimum living wage so as to keep the standard of living of the population above the poverty line. Care must be taken in collective bargaining to ensure that growth in income does not lead to inflation. Given wide currency by British economist David Ricardo, of French origin.

    5. Engel’s Law anticipates that with rising incomes, the share of expenditures for food and other products declines. Based on surveys of families’ budgets and expenditure patterns, that the income elasticity of demand for food was relatively low. The resulting shift in expenditures affects demand patterns and employment structures. Engel’s Law does not suggest that the consumption of food products remains unchanged as income increases! It suggests that consumers increase their expenditures for food products, in % terms. Ernst Engel was a 19th century German statistician.

    6. Peter’s Principle is in any organization every employee rises to his level of incompetence. All valuable work is therefore done by people who have not yet reached that level. People must be cautious with leadership because they often accept positions of power for which they are not qualified although they may have performed well in another, lesser or more specialized position as published by a Canadian-born author, Professor Lawrence J. Peter, in 1969.

    Social security benefits provide a subsistence living due extra protection like anyone else whose income is less than the maximum social security benefit around $2,500 a month. People making more than the maximum taxable limit need to be taxed to supply poor people with the money they will use more prudently to keep prices down and employ the rich people who supply them with safe products for low prices. A consumer economy is the object of Keynesian economics, not the subsidies that are mal-attributed to him in college economic textbooks. SSA needs to get the OASDI tax rate right and stop plagiarizing. The stinky old Sanders’ Clause, that money spent is money earned, has been removed from the 20th edition of CHANGE but might lay claim to Sec. 24 To WHOMB of the Social Security Amendments of January 1, 2017 http://www.title24uscode.org/ss2017.htm.

  9. SSmith

    It is amazing to me how ignorant most people are about their social security benefits in even the most basic form. This is precisely why Congress is eyeing reducing “aka modernizing” benefits for everyone to solve the funding problem. The vast majority of taxpayers are clueless. Get with it people—educate yourselves about Social Security before it is too late.

  10. Rod

    I see many comments here that seem critical of Social Security for merely carrying out the laws passed by Congress and signed by the President. If you think something about the program is unfair, such as the requirement that Social Security can only pay someone the higher of two benefits, you shouldn’t waste this resource on those complaints but send them to the responsible entity, Congress.

Comments are closed.