Is the Social Security eligibility date going up in 2018?
Most Americans have been eligible to draw their full Social Security benefit at age 66. If you will turn 62 in 2018, the age you can draw the full Social Security benefit will increase by 2 months as it did last year. So, if you were born in 1956, you will be eligible for the full benefit at 66 years and 4 months old. By 2022, this age will increase 2 months a year until it reaches 67.
Can you still claim early?
Yes, but it will be costlier to do so by lowering the available benefit. In 2018 those claiming Social Security early at age 62 will see a 26.1% reduction in the total benefit up from 25%. This reduction will grow to 30% in 2022 when the full retirement age reaches 67.
Can you still delay Social Security benefits?
Those eligible for Social Security can still delay receiving benefits until age 70. Each year the benefit is delayed will increase the total benefit by 8%. In 2022 the maximum benefit for delaying will be 24% versus 32% for people born before 1956.
Are you still eligible for Medicare at 65?
The eligibility rules for Medicare have not changed, and eligible people can enroll at 65.
How do you decide which Social Security circumstance to choose?
Opting to draw Social Security early, at your eligibility date, or delaying benefits to 70 is a decision not to be taking lightly. Some of the many variables to be considered are:
- Other sources of income
- Tax consequences (Spousal income)
- Current need vs future need
- Family longevity vs breakeven point
Speak with an expert and understand the pro and cons of each option. If your expert is pushing you one way or the other, I would find a new expert. Everyone’s personal situation is different and there is NOT a one size fits all option, Understand the options and choose what is best for your situation.