At What Age Does Ssdi Change To Ssi

SOCIAL SECURITY

Fact Sheet

Social Security

Increment in Retirement Age

The Social Security Amendments of 1983 (H.R. 1900, Public Law 98-21) independent two provisions which may take an touch on on when an individual decides to retire. The ii provisions are an increment in the retirement age that can first affect individuals retiring in 2000 and an increase in the delayed retirement credit for those who piece of work beyond full retirement age.

Increase in Retirement Age

For persons born in 1938 or afterward, their Social Security do good may exist affected by a provision that raises the historic period at which full Social Security benefits are payable.
The age for collecting total Social Security retirement benefits will gradually increase from 65 to 67 over a 22-yr menstruation get-go in 2000 for those retiring at 62.
The earliest a person tin can start receiving reduced Social Security retirement benefits will remain age 62.

Increase in Age for Receiving Full Social Security Benefits

Year of Birth	Full Retirement Age
1937 or before	65
1938	65 and 2 months
1939	65 and 4 months
1940	65 and half dozen months
1941	65 and 8 months
1942	65 and 10 months
1943 � 1954	66
1955	66 and 2 months
1956	66 and 4 months
1957	66 and 6 months
1958	66 and 8 months
1959	66 and x months
1960 and later	67

Background
- The 1983 Amendments phased in a gradual increase in the historic period for collecting full Social Security retirement benefits. The retirement age will increase from 65 to 67 over a 22-year menstruum, with an 11-yr hiatus at which the retirement age will remain at 66.
- The original Social Security Act of 1935 set the minimum age for receiving full retirement benefits at 65.
- Congress cited improvements in the health of older people and increases in average life expectancy every bit primary reasons for increasing the normal retirement age.
- Since the program first began paying monthly Social Security benefits in 1940 the boilerplate life expectancy for men reaching age 65 has increased about 4 years to historic period 81; for women reaching age 65, their average life expectancy has increased nearly 6 years to age 84.
- The average age for men retiring in 1998 was 64. The average age for women retiring in 1998 was 64. In 1998, nigh 69% of men and women retired and started taking Social Security benefits earlier age 65.

The primeval a person can starting time receiving Social Security retirement benefits will remain historic period 62.

Social Security benefits are reduced for each month a person receives benefits before full retirement age.
- For persons whose full retirement age is 65, a retirement benefit is reduced by ⁵/₉ of ane% for each month of benefits prior to total retirement age.
As the age for collecting total Social Security benefits increases, persons who retire at age 62 will run across a greater reduction in their Social Security benefits.
- For persons whose full retirement age is age 65 and two months or after, a retirement benefit volition be reduced by ^v/₉ of 1% for each calendar month upward to the first 36 months of benefits earlier full retirement age, plus ⁵/₁₂ of 1% for each month of benefits in backlog of 36 prior to total retirement age.
- Examples:
  - Social Security benefits are reduced by 20% for a person who retires at 62 whose full retirement age is 65 (born 1937 or before).
  - Social Security benefits will be reduced by 20⁵/_{half dozen}% for a person whose full retirement historic period is 65 and 2 months (retires at 62 in 2000).
  - Social Security benefits will exist reduced past 25% for a person who retires at 62 whose full retirement historic period is 66 (built-in 1943-1954).
  - Social Security benefits will be reduced past 30% for a person who retires at 62 whose full retirement age is 67 (born in 1960 or later on).
Background
- The Social Security Amendments of 1956 lowered the minimum historic period for retirement benefits to 62 for women.
- The Social Security Amendments of 1961 extended the early retirement provision to men.

The new Social Security Statement :

Tells a person their full retirement historic period and
Provides a retirement benefit estimate for age 62, full retirement age, and age 70.
The age 62 benefit judge incorporates the reduction for early retirement.
The age 70 benefit estimate incorporates delayed retirement credits.

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410-965-8904 FAX 410-966-9973