Since retirement benefits started there have been many updates and changes to keep up to date. The US economic situation improves over the years if we look back in time. Therefore, benefits need improvements as well. The US government has signed the Secure 2.0 Act of 2022. It will bring new possibilities for workers in order to save for their nest eggs. There will also be changes to motivate workers to make more contributions to their savings plans.
It was way back in time when congress decided to vote to raise the Social Security retirement age. Back in 1983, they decided to increase it from the age of 65 to 67 years old. However, it was not an immediate change. They had the intention to do it step by step. It has taken forty years and it is not completely changed. The new Full Retirement Age for mid-2023 will reach 66 years and 6 months.
Full Retirement Age is usually referred to as FRA and it is the age when you can receive your complete Social Security check. That is why it is advisable to keep working until you get your FRA. In this way, you can make more money for your future check. However, many people even prefer to retire early. They claim that they could get more checks by doing so.
What is the Full Retirement Age for those whose birth was in 1956?
The Full Retirement Age for those born in 1956 is 66 years and four months. However, if your birth was a year later, it will be two months more. So, those from 1957 will be able to enjoy retirement fully when they are 66 years and 6 months. There is not a big difference but for those who cannot wait for it any longer, it might seem an eternity.
For instance, those whose birth was during the last 6 months of the year 1956 will be able to retire by the end of April. Those who belong to the 1960s will have to wait for retirement until they are 67 years old though. If you have been squirreling enough during your work life, you may be able to retire as early as the age of 62. Those who believe that they can cope with soaring prices and inflation, and do not have mortgages or debts may consider that option.
Keep in mind that the amount will have a reduction, so maybe it is worth working until you are able to. Some retirees are finding it really hard to make ends meet. Many have not saved much money and their main source of income is their Social Security retirement benefit. Getting a 30% reduction is a big bite from your check while working longer could increase it up to 8% by the age of 70.