Estate Planning
Retirement Benefits
Full Retirement
If you were born before 1938, you will be eligible for your full Social Security benefits at age 65. Beginning with a birth year of 1938 and after the normal retirement age will be increased:
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| 1938 - 65 + 2 months | 1941 - 65 + 8 months |
| 1939 - 65 + 4 months | 1942 - 65 + 10 months |
| 1940 - 65 + 6 months | 1943 thru 1954 - 66 |
| (Note: Congress is considering raising these requirements) | |
Reduced Retirement Benefits
No matter what your “normal” retirement age (as above) you may start receiving benefits as early as age 62. However if you start your benefits earlier than your normal retirement age your payments will be reduced 5/9's of 1% for each month before your normal retirement date.
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| Example: | at age 62 (in 2004) – 75.83% |
| at age 62 and 10 months (in 2004) - 80% | |
| (Note: The reduction will be greater in future years as the normal retirement age increases.) | |
There are advantages and disadvantages to taking your benefit before your full retirement age. The disadvantage is that your benefit is permanently reduced. The advantage is that you collect benefits for a longer period of time.
Increased Retirement Benefits
You will be given a credit for delaying your retirement benefits beyond your normal retirement age. This credit is a percentage added to your Social Security payment for each year you delay.
| Year of birth: | Increase: |
| 1929 -1930 | 4.5% |
| 1931 -1932 | (per yr) 5.0% |
| 1933 -1934 | 5.5% |
| 1935 -1936 | 6.0% |
| 1937 -1938 | 6.5% |
| 1939 -1940 | 7.0% |
| 1941 -1942 | 7.5% |
| 1943 or later | 8.0% |
| Important: If you decide to delay your retirement benefits, be sure to sign up for Medicare at age 65. | |
Retirement benefits for surviving spouse
Surviving spouses can begin receiving benefits at age 60. If you are receiving widowers or widows’ benefits, you can switch to your own retirement rate (if your retirement rate is higher) as early as age 62. In many cases, the surviving spouse can begin receiving payments at a reduced rate and then switch to the other benefit at an unreduced rate at age 65. Check with your Social Security office in this situation.