Are You Ready? The Surprising Truth About Your Social Security Retirement Age

Not So Fast Boomers

Well well well look who's finally reaching retirement age. The baby boomers have arrived but there's a little surprise waiting for them. Turns out 65 is not the magical age of full retirement when they can start cashing in those Social Security benefits they've been earning all their lives. Thanks to some changes back in 1983 the full retirement age has been gradually creeping up to 67. Not so fast boomers!

The Great Retirement Age Debate

So what does this mean? If you were born between 1943 and 1954 your full retirement age is 66. If you were born in 1960 or later (yes I'm talking to you millennials) your full retirement age is 67. It's like they're playing a game with us moving the goalposts every few years. But don't worry there's still a way to maximize those benefits.

Delayed Gratification

Here's a little tip for you: delay delay delay. If you hold off on claiming your Social Security until age 70 you'll get the biggest benefit payments possible. Who's laughing now huh? It doesn't matter what your full retirement age is delaying is the way to go. Trust me I'm a professional.

Confusion and Deductions

But wait there's more! Did you know that Medicare can trip you up too? See when you turn 65 you become eligible for Medicare. And some retirees think they should sign up for Social Security at the same time to cover those pesky Medicare premiums. Well I hate to break it to you but that's a big mistake. Tying these decisions together will result in permanently reduced Social Security benefits. Ouch!

Take Your Time

Now I know not everyone can or should wait to claim Social Security. If you have a poor health prognosis it might make sense to start collecting benefits at 62. But if you can hold out do it. Waiting until your full retirement age means you can receive up to 100% of the benefits you've earned. And if you really want to sweeten the deal delay claiming until age 70 and watch that benefit increase by 8% per year. Cha ching!

The Future is Uncertain

I hate to be the bearer of bad news but the full retirement age might go up again. Congress is playing around with the idea to fix Social Security's funding problems. But don't worry too much it'll probably only affect those youngsters aged 55 and younger. And let's face it who knows what the future holds anyway? Just enjoy life and maybe watch a little 'Better Call Saul' while you're at it.