What Is Full Retirement Age For Social Security?
We are eager to expand our knowledge on the issues that seem relevant and beneficial for our lives. We tend to do this by learning and studying new things everyday. But when it comes to finance it may seem a bit challenging in the beginning because it requires a lot of energy and calculation through our journey. Besides, trying to learn stuff, we expose ourselves to false information from time to time.
That’s why we’re offering our articles in our website to make you gradually more confident and stable. Abstaining from false information and understanding the value of learning on your own, you’ll get to the point that education is the best thing that we can ever have.
Lets put everything aside for a while, today’s topic will be on “what is full retirement age for social security” ? As stated in the title, we’ll once again point some important steps regarding our topic in the article While doing that, we’ll concentrate on some useful sources such as SSA information pack and various articles online and offline. For that reason we hope that you get the best out of it.
Starting with the question what is full retirement age for social security, we can simply answer that saying The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. This data has been taken from ssa.gov.com. Anyone who is interested to take a look or have a deeper research about the subject can use that link we stated above.
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That was the brief answer for the question. If we want to broaden our perspective on that topic, we can diversify our sources with the related surveys and investigations. Of course when we include taxes or medicare to the equation, our calculations may differ. Because while we are trying to understand the benefits or incomes, we should not exclude calculating the costs or outcomes as we have seen before in our previous articles.
As stated below, there is more information about the tax issue when you retire.
Your benefits may be taxable About 40 percent of people who get Social Security have to pay income taxes on their benefits. For example:
• If you file a federal tax return as an “individual,” and your combined income is between $25,000 and $34,000, you may have to pay taxes on up to 50 percent of your Social Security benefits. If your combined income is more than $34,000, up to 85 percent of your Social Security benefits is subject to income tax.
• If you file a joint return, you may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income between $32,000 and $44,000. If your combined income is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.
• If you’re married and file a separate return, you’ll probably pay taxes on your benefits. At the end of each year, we’ll mail you a Social Security
Considering this issue we should calculate everything beforehand. Because it changes the equation pretty straightforward. If you want to have a deeper understanding about the subject, you can visit their website. Below we’ll continue with the medicare questions when you retire.
Medicare is a health insurance plan for people who are age 65 or older. However, you can get Medicare at any age if:
• You’ve been entitled to Social Security disability benefits for 24 months.
• You have End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant), or amyotrophic lateral sclerosis (Lou Gehrig’s disease).
When should I apply for Medicare? If you’re not already getting benefits, you should contact Social Security about three months before your 65th birthday to sign up for Medicare. You should sign up for Medicare even if you don’t plan to retire at age 65 to avoid the late enrollment penalty.
As you can see above when we add taxes and medicare to the equation the benefits may exceed the costs. In our financial independence journey, we’ll do our best to calculate every point that will help us in the process. Remember our previous articles and enjoy the moments as you improve yourself on finance.
Finishing our words we once again want to thank you for reading. We also appreciate the time and effort that you put in to have a broader understanding about finance. If we can help you with that writing our articles we’ll be glad. From your feedback we understand that we’re creating something valuable here for the future. İmproving and developing our readers with the necessary articles is what we want to achieve when we have a long term view.
As the last thing we have one more quote about the earnings of social security. Below you’ll see necessary information about the earnings plan. You can evaluate this as a positive approach towards social security. But it’s all up to you. Because you decide the best studying your lesson and knowing the positive and negative sides of social security in brief and finance in general.
Conclusion
Social Security replaces a percentage of a worker’s pre-retirement income based on their lifetime earnings. The amount of your average wages that Social Security retirement benefits replaces varies depending on your earnings and when you choose to start benefits. If you start benefits at age 67, this percentage ranges from as much as 75 percent for very low earners, to about 40 percent for medium earners, and about 27 percent for high earners. If you start benefits earlier than age 67, these percentages would be lower, and after age 67 they’d be higher. Most financial advisers say you will need about 70 percent of pre-retirement income to live comfortably in retirement, including your Social Security benefits, investments, and other personal savings.
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NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.
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