What Is My Retirement Age
5 min read
Understanding your retirement age can help you to plan for your future and make informed financial decisions. Fortunately, the UK no longer has a default retirement age, meaning you have complete freedom over when you choose to retire.
To make that important decision, however, there are certain considerations you may want to think about – such as when you are able to claim your pension and whether you wish to stop working at a certain age.
In this guide, we explore the UKs current retirement age, both the State and personal pension age and future plans which may affect when you can claim your pension.
When Can I Access My Super Or The Age Pension
In practice, there are two age rules that impact when most Australians can retire because they allow you to access funds to support your retirement. These are:
- Preservation age: This is the age when you can access your super provided you have also met a condition of release .
- Age Pension age: This is the age when you can access Australias Age Pension, provided youre an Australian resident and you pass both the income test and the assets test.
You can find out your preservation age and Age Pension eligibility age by entering your date of birth into our retirement age reckoner. Alternatively, the table below provides the preservation age and Age Pension age for a range of birth years.
Democrats And Republicans Are Approaching A Social Security Fix From Opposite Ends Of The Spectrum
For most retirees, Social Security represents an indispensable financial lifeline that helps make ends meet. For a significant percentage of the current labor force, this statement will also hold true once they retire.
But when examined as a whole, Social Security can be a complex, confusing, and potentially intimidating program for the American public to try to understand. I can change that.
Today we’re going to break down three complex topics that’ll be explained in plain English:
- How America’s top retirement program got itself into financial trouble.
- The Social Security changes Democrats and Republicans want to make to strengthen the program.
- Why a resolution to Social Security’s problems is a ways off.
Image source: Getty Images.
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Do Survivor Benefits Increase After Full Retirement Age
If you are the surviving spouse who is claiming benefits based on your deceased partner’s work record, there is no benefit to waiting until after FRA to claim your benefits. You do not earn delayed retirement credits, so your benefit will not increase.
However, if you are the higher-earning spouse, delaying your claim for benefits until after FRA can result in your widow receiving more monthly income, as your widowed partner will receive the higher of the two monthly benefits you were each receiving.
Possible Entitlement To Pbs
From 1 July 2014, the PBS was closed to further registrations. Existing registered members may still be eligible to claim a pension bonus payment. The claim for a pension bonus must be lodged together with the claim for Age.
A claimant cannot receive a payment under the PBS if they receive an income support payment, including Age, after reaching age pension age.
Act reference:SSAct section 43 Qualification for Age, section 92A Simplified outline, section 92H Date of qualification for the Age
Policy reference: SS Guide 188.8.131.52 Qualification for PBS, 184.108.40.206 Registration for PBS, 220.127.116.11 PBS work test, 18.104.22.168 Claiming the PBS bonus
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How The Retirement Age Could Change
Retirement ages were last altered in 1983 under then-President Ronald Reagan.
Those changes, which raised the full retirement age to 67 from 65, are still being phased in today.
Even just the bump up to age 66 from 65 represented a 5% benefit cut, Elsasser noted.
Many experts expect that any future changes could push up the Social Security retirement age. Notably, the Social Security 2100 Act: A Sacred Trust, introduced by Rep. John Larson, D-Conn., last year, would leave those thresholds unchanged and, in some respects, make benefits more generous. But the legislation has a five-year timeframe.
Separately, the Social Security Administration has scored the financial effects other proposals to change the age thresholds could have on the program.
Just in 20 years, we’ve seen a substantial increase in the retirement age.Mark J. Warshawskysenior fellow at the American Enterprise Institute
“I expect that at some point in the not too distant future, Congress will agree on a Social Security package that includes some type of adjustment to the retirement age,” Akabas said. “Whether that’s in two years or 10 years, it’s very difficult to predict.”
Experts say it’s possible the full retirement age could get pushed up by a year or two, which could be gradually phased in.
Additionally, lawmakers could also raise the initial age for eligibility for retirement benefits from 62, as well as the highest age for delaying benefits and earning benefit increases from 70.
State Pension Age Increases Beyond Age 67
Current law allows for State Pension age for men and women to increase from 67 to 68 between 2044 and 2046 but this timetable could be changed by the government. The current law is shown below and we will update this guide if and when the law is amended.
- People born 6 April 1977 5 May 1977 can claim from 6 May 2044
- People born 6 May 1977 5 June 1977 can claim from 6 July 2044
- People born 6 June 1977 5 July 1977 can claim from 6 September 2044
- People born 6 July 1977 5 August 1977 can claim from 6 November 2044
- People born 6 August 1977 5 September 1977 can claim from 6 January 2045
- People born 6 September 1977 5 October 1977 can claim from 6 March 2045
- People born 6 October 1977 5 November 1977 can claim from 6 May 2045
- People born 6 November 1977 5 December 1977 can claim from 6 July 2045
- People born 6 December 1977 5 January 1978 can claim from 6 September 2045
- People born 6 January 1978 5 February 1978 can claim from 6 November 2045
- People born 6 February 1978 5 March 1978 can claim from 6 January 2046
- People born 6 March 1978 5 April 1978 can claim from 6 March 2046
- People born 6 April 1978 onwards can claim from their 68th birthday
It is likely that further increases in state pension age, to age 70 and beyond, will be announced in the future.
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Tips For Managing Your Rmds
- A financial advisor can help you determine your income needs in retirement and then create a withdrawal strategy that satisfies your annual RMD. Finding a qualified financial advisor doesnt have to be hard. SmartAssets free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If youre ready to find an advisor who can help you achieve your financial goals, get started now.
- Taking out only whats required may not be the best withdrawal strategy, depending on your needs. A study from JPMorgan Chase found that a withdrawal approach based solely on required minimum distributions not only fails to meet retirees annual income needs but can also leave money on the table at the end of their lives.
- It may be helpful to get a jump start on planning for RMDs, even if youre still years away from retiring. Use SmartAssets investment calculator to estimate how much in retirement savings youll have and then divide that number by 27.4 . But keep in mind that the Securing a Strong Retirement Act could mean RMDs would start even later.
Is There Really A $16728 Social Security Bonus
The Social Security Administration has designed early and late retirement to balance-out over time in terms of lifetime benefits. If you get $16,728 more in payments by retiring later, you get $16,728 more in interest payments on the funds you collected by claiming early.
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Full Retirement Age Around The World
FRA around the world can be as young as 58 but typically ranges between 65 and 67. It can differ for men and women in some countries. Here are some examples:
- Australia: 66.5
- Brazil: 65 62
- China: 60 50 or 55
- Germany: 65 and six or seven months
- Philippines: 60
- Russia: 61.5 for men and 56.5 for women
- South Korea: 62
- United Kingdom: 66
The Social Security Retirement Age Increases In 2022
While you can start Social Security payments at age 62, your monthly checks are reduced if you begin collecting benefits at this age. To claim your full benefit, you need to at your full retirement age, which varies by birth year.
Here’s a look at how the Social Security retirement age is changing, and what this means for your retirement payments:
— An older Social Security full retirement age.
— A bigger reduction if you claim Social Security early.
— Less of a benefit for delaying claiming Social Security.
— The Medicare eligibility age remains the same.
— You need to carefully determine the optimal age to start Social Security.
An Older Social Security Full Retirement Age
The full retirement age used to be 65 for those born in 1937 or earlier. Those born between 1943 and 1954 have a full retirement age of 66. The full retirement age further increases in two-month increments each year to 66 and 10 months for those born in 1959, up from 66 and eight months for those with a birth year of 1958.
The full retirement age for those who turn age 62 in 2022, born in 1960, is 67. The full retirement age will remain age 67 for everyone born in 1960 or later.
A Bigger Reduction If You Claim Social Security Early
Workers who are eligible for Social Security can start payments at age 62, regardless of their full retirement age. However, the benefit reduction for early claiming is bigger for those who have an older retirement age.
The Medicare Eligibility Age Remains the Same
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Average Retirement Age By State
Where you live can impact your retirement age due to available employment opportunities, healthcare needs and the cost of living.
In general, southern states like Alabama, Georgia and South Carolina have a lower average retirement age than the national average. By contrast, states in the Northeast such as Connecticut, New Hampshire and Massachusetts have higher average retirement ages.
A MoneyTalksNews survey from 2019 looked here are the U.S. Census Bureaus American Community Survey to determine the average retirement ages by state. Heres what they found:
Why Did The Full Retirement Age Change
Full retirement age, also called “normal retirement age,” was 65 for many years. In 1983, Congress passed a law to gradually raise the age because people are living longer and are generally healthier in older age.
The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later.
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Social Securitys Real Retirement Age Is 70
The briefs key findings are:
- Due to increases in Social Securitys Delayed Retirement Credit, the effective retirement age is now 70, with monthly benefits reduced for earlier claiming.
- Benefit levels at 70 appear appropriate given that rising deductions for Medicare and greater benefit taxation have reduced Social Securitys net replacement rates.
- The shift to 70 should be feasible for many workers given increases in lifespans, health, and education.
- But vulnerable workers forced to claim early will have low benefits and will be particularly harmed by any further cuts.
- Policymakers need to inform those who can work that 70 is the new retirement age and devise ways to protect those who cannot work.
Ten Years Qualifying Residence
Ten years qualifying residence is satisfied if the claimant has:
- been an Australian resident continuously for at least 10 years at any point in the past, OR
- been an Australian resident for 2 or more periods that in total exceed 10 years, AND
- at least one of those periods is of 5 years duration or more.
Act reference:SSAct section 7 Australian residence definitions, section 43 Qualification for Age
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Can I Retire At 55 And Collect Social Security
So can you retire at 55 and collect Social Security? The answer, unfortunately, is no. The earliest age to begin drawing Social Security retirement benefits is 62.Once you turn 62, you could claim Social Security retirement benefits but your earnings from consulting work could affect how much you collect.
Working After Full Retirement Age Faq
Retirees may work while collecting Social Security benefits, but those younger than their FRA will be subject to the retirement earnings test .
Under this test, if your earnings exceed a certain limit , you will temporarily forfeit some or all of your benefits. Once you reach full retirement age, your benefit is recalculated and you may receive most of that money back.
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Can I Get Extra Help Through My State Pension
An additional state oension payment is available to men born before 6 April, 1951 and women born before 6 April, 1953.
This is paid automatically if you are eligible, unless you have contracted out of it.
If you defer your state pension payments beyond when you are eligible to receive them, the amount could be higher when you do decide to claim it.
Its important to remember that you need 35 years of national insurance contributions to qualify for the new full state pension, and at least 10 years of contributions to receive anything.
Those receiving the old basic state pension must have 30 years of contributions to receive the full amount, while you will get 1/30 of the full amount for each year of contributions below the 30-year level.
Average Retirement Age In The Us
The average retirement age for Americans has increased by about three years over the past three decades, according to the Center for Retirement Research at Boston College. Even so, on average, Americans are retiring before they reach full retirement age. Men retire at an average age of 64.6 years. The average retirement age for women is 62.3 years.
The increase in the average retirement age has been fueled in large part by the later retirements of college graduates, the research from Boston College shows. For example, men with college degrees retire three years later than men who are high school graduates. One major reason workers who are high school graduates tend to retire earlier is that their health and life expectancy haven’t improved as much as those of college graduates over the past century. Their jobs also tend to be more physically demanding, and they are not able to take as much time off as workers with college degrees.
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How Do Benefits Work And How Can I Qualify
While you work, you pay Social Security taxes. This tax money goes into a trust fund that pays benefits to:
- Those who are currently retired
- To people with disabilities
- To the surviving spouses and children of workers who have died
Each year you work, youll get credits to help you become eligible for benefits when its time for you to retire. Find all the benefits Social Security Administration offers.
There are four main types of benefits that the SSA offers:
Questions To Ask Yourself Before Retiring
As you plan, consider these important questions:
- At what age do you plan to retire?
- Can you participate in an employer’s retirement savings plan? This includes 401 plans and traditional pension plans.
- If you have a spouse or partner, will they retire when you do?
- Where do you plan to live when you retire? Will you downsize, rent, or own your home?
- Do you expect to work part-time?
- Will you have the same medical insurance you had while working? Will your insurance coverage change?
- Do you want to travel or pursue a costly, new hobby?
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Start Planning For Retirement As Early As Possible
The sooner you start saving for retirement, the more time your money has to grow. Starting early on in your careereven if its just a small amount per paycheckcan make a substantial impact on your ability to retire thanks to compound interest. If nothing else, youll develop a savings mindset.
As your career progresses and finances improve, make saving for retirement a priority. Prominent certified financial planner Michael Kitces recomments saving half of all your future raises.
Table : Increase In State Pension Age From 66 To 67 Men And Women
|Date of birth||Date State Pension age reached|
|6 April 1960 5 May 1960||66 years and 1 month|
|6 May 1960 5 June 1960||66 years and 2 months|
|6 June 1960 5 July 1960||66 years and 3 months|
|6 July 1960 5 August 1960||66 years and 4 months|
|6 August 1960 5 September 1960||66 years and 5 months|
|6 September 1960 5 October 1960||66 years and 6 months|
|6 October 1960 5 November 1960||66 years and 7 months|
|6 November 1960 5 December 1960||66 years and 8 months|
|6 December 1960 5 January 1961||66 years and 9 months|
|6 January 1961 5 February 1961||66 years and 10 months|
|6 February 1961 5 March 1961||66 years and 11 months|
|6 March 1961 5 April 1977*||67|
*For people born after 5 April 1969 but before 6 April 1977, under the Pensions Act 2007, State Pension age was already 67.
For the purposes of calculating an individuals State Pension age the following applies:
A person born on 31 July 1960 is considered to reach the age of 66 years and 4 months on 30 November 2026.
A person born on 31 December 1960 is considered to reach the age of 66 years and 9 months on 30 September 2027.
A person born on 31 January 1961 is considered to reach the age of 66 years and 10 months on 30 November 2027.
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