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.
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:
What Age Can You Go On Medicare
age 65 or olderGenerally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease . Medicare has two parts, Part A and Part B .
Whats the average Social Security check at 62?
The question is, what can the typical retired worker expect to receive from Social Security at age 62? According to payout statistics from the Social Security Administration in June 2020, the average Social Security benefit at age 62 is $1,130.16 a month, or $13,561.92 a year.
How much will I get a month if I retire at 62?
For example, the AARP calculator estimates that a person born on Jan. 1, 1959, who has averaged a $50,000 annual income would get a monthly benefit of $1,264 if they file for Social Security at 62, $1,785 at full retirement age , or $2,237 at 70.
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When Will 67 Be The Official Retirement Age
The bill decreed that starting on April 1, 2023, the official retirement age for OAS eligibility would slowly begin increasing. The goal is to have the full implementation of 67 as the retirement age for the entire population by January 2029.
For now, the steady increase and what it means for you will depend on your birth year. Check these dates below to see when you qualify:
For Those Born in 1958
Anyone who was born in the year 1958 will continue to be eligible during their 65th year. The month of the year in which you become eligible, however, differs based on the month you were born.
If you were born in January, February, or March of 1958, you are eligible for OAS on your birthday. If you were born in April or May, you must wait one month after your birthday.
People born in June or July must wait two months after their birthday. If you were born in August or September, you must wait three months after your birthday.
Those born in October or November must wait four months after their birthday. Finally, if you were born in December, you must wait five months after your birthday.
For Those Born in 1959
Luckily, those born in 1959 are also eligible within their 65th year. The pattern set for those born in 1958 is continued throughout this age group as well.
If you were born in January, you’ll have to wait five months after your birthday. If you were born in February or March, you’ll have to wait six months.
What If I Was Born After 1959?
Before You Make Your Decision
There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit will be reduced. Each person’s situation is different. It is important to remember:
- If you delay your benefits until after full retirement age, you will be eligible for delayed retirement credits that would increase your monthly benefit.
- That there are other things to consider when making the decision about when to begin receiving your retirement benefits.
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Age Discrimination In Employment
Under employment equality legislation, you cannot be discriminated againston the grounds of age. However, employers can set minimum recruitment ages of18 or under, and set retirement ages in employment contracts. If setting amandatory retirement age, the employer must be able to show that it isobjectively justified. This is set out in the Employment Equality Act 2015 Act 1998).
Definition And Examples Of Normal Retirement Age
In most cases, if you have been working, you have been paying a portion of your income into Social Security. That guarantees an income when you are no longer able to work. To get that full income, you must wait until your normal retirement age to start taking your available benefits as defined by the Social Security Administration .
- Alternate Name: Full retirement age
The SSA sets your NRA based on when you were born. Examples of normal retirement age include the following:
- For people born in 1937 or before, their full retirement age is 65.
- For people born between January 2, 1943, and January 1, 1955, full benefits begin at age 66.
- Those born in 1960 or later must wait until they turn 67.
Here are the NRAs based on date of birth, as listed on the Social Security website:
|1960 and later||67|
Rising Retirement Age Helps Older Workers
Simply put, employers dont like to hire people who are too close to the retirement age. This is because theyd rather not put in the effort and training to hire someone who isnt going to be working long-term, and who seems like theyre just looking for a job to hold them over until retirement.
Fortunately, a higher retirement age means people who employers would have looked over 20 years ago for their age are receiving more chances at employment.
Higher retirement age increases the value of older workers since they tend to have more experience than younger workers competing for the same positions, and retirement being put off makes them more worth training and keeping.
France, Belgium, and Italy have retirement ages of 60, and they have correspondingly lower rates of employment among people 50 and up.
The social expectation that people of this age group will retire soon hamstrings their ability to get gainful employment, which has led other countries to raise their retirement ages.
Unsurprisingly, this has led to lower unemployment in 50+ demographics in these countries.
Retiring After Age : Ages 66 To 70
For many, the upper 60s is the golden mean of retirement timingyou’re old enough to have built up a nice financial reserve and young enough to enjoy your job-free years. The fact that you’ll get your full Social Security payment at age 66 to 67 can make a huge difference, especially if you’re relatively healthy and likely to have an average or longer-than-average retirement.
Waiting also gives you a few extra years to shore up your tax-advantaged investment accounts. Investors who are at least 50 years of age can make an annual catch-up contribution to their 401 or IRA. For 2021 and 2022, those 50 or older can contribute $7,000 to a traditional IRA or Roth IRA. If you use a 401 to save for retirement, you can defer up to $26,000 of your salary in 2021 after you reach the age of 50.
Also, waiting until you hit 65 means that you are eligible for Medicare, which is typically a fraction of the cost of individual insurance plans for older adults.
Normal retirement agethe age at which you receive full Social Security benefitsgradually increases to 67 for anyone born in 1960 or after.
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Pension Plans And Iras
If retiring before age 65, some individuals, such as federal employees, can withdraw retirement plan savings at age 55 and at age 59½ all employees can withdraw money from their qualified plans and IRAs without an IRS penalty for early withdrawal. Individuals who delay retirement must start required minimum distributions, RMDs, from retirement plans by age 72.
According to Fidelity Investments, individuals retiring at age 65 should aim to have 12x their pre-retirement salary saved and plan an annual withdrawal rate throughout retirement of 4.2%.
Many People Dont Even Know About Retirement
A lot of misinformation is thrown around about retirement, not to mention that many people calculate poorly. A common myth about retirement is that withdrawing social security benefits early will lower your total benefits, which isnt true, but could cause some people to resist retiring early.
Another thing people dont know about retirement is how much they need to maintain a comfortable standard of living. Many calculations are suggested, from a million dollars to 10-12 times your previous annual income.
In the end, though, it all depends on how much per year youre comfortable with living on.
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Average Retirement Age By Education
CRR data shows that Americans with higher levels of educational attainment tend to retire later than those with a high school degree.
Male college graduates retire three years later than those with only high school diplomas. Women also retire later if they have more education, but the story is less clear because so many more women entered the workforce throughout the latter half of the 20th century.
On average, male college graduates retire at the age of 65.7, while high school graduates retire at the age of 62.8.
Why the difference?
CRR reported that less-educated people are generally in worse health, and are therefore more likely to retire due to health issues. Meanwhile, white collar jobswhich tend to be filled by those with a college educationare less physically demanding, thereby allowing workers to stay employed longer.
Check Your State Pension Age
Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension.
The State Pension age is under review and may change in the future.
Use this tool to check:
- when youll reach State Pension age
- your Pension Credit qualifying age
- when youll be eligible for free bus travel
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New Retirement Age And Social Security
Retirement age and Social Security are closely linked. For many Americans, Social Security benefits are a major source of retirement income. Its no wonder 62 is now the average new retirement age. Thats when most people become eligible for benefits. Approximately one-third of workers opt for benefits upon reaching 62.
Taking Social Security benefits early reduces the amount you receive by as much as 30 percent. Still, its an attractive option for those eager to leave their working lives behind.
Full Social Security benefit eligibility is age-specific. Anyone born before 1955 may already take full benefits. For those born between 1955 and 1960, the full retirement age increases gradually. Anyone born in 1960 or later reaches full eligibility at 67.
Keep in mind that if you can avoid taking Social Security benefits before age 70, your benefits increase by eight percent per year. Roughly 40 percent of older Americans have no other source of retirement income other than Social Security.
What Age Should I Consider Retirement
The normal retirement age is 65 because that is when you can start signing up for Medicare. However, there are many people who will retire before that because they have a job that either allows them or requires them to do so. These people will find that they can retire at around 52 or 53 if they are doing a job that retires them after 30 years.
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Retirement Age: Nurse Tutor Drags Fg To Court
Lawrence Njoku, Enugu
A registered nurse stirs a nasal swab in testing solution.
Nurse educators under the Federal Ministry of Health have dragged the Federal Government to court seeking an interpretation of the newly signed harmonised retirement age for teachers in Nigeria.
In suit No. FHC/183/2023, filed at the Federal High Court Enugu, Mrs. Abba Ugo Cecelia, a Nurse educator, who is an Assistant Director, said the move was a last resort after both the Federal Civil Service Commission and the Federal Ministry of Health failed to respond to her letters.
Abba spoke to journalists at the premises of the Federal High Court, Enugu, disclosing that though President Muhammadu Buhari assented to the bill as passed by the National Assembly, the Ministry of Health was foot-dragging in its implementation.
Joined as defendants in the suit are the Chairman, Federal Civil Service Commission, the Minister for Health and the Federal Ministry of Health.
Whether it was right for the defendants/respondents and their staff/agents/servants to work or act contrary to the clear stipulations and general intendments of the Federal Government as contained in circular of the Federal Ministry of Education dated June 23, 2022, signed by one Andrew David Adejo and the Harmonised Retirement Age for Teachers in Nigeria Act 2022, as recently signed into law by His Excellency Muhammadu Buhari.
We are expecting the court to answer relevant questions and make necessary consequential declarations.
Retirement Is Not For The Faint Hearted
Sheila Nuness knee-jerk reaction to her imminent retirement from the University of Cape Town mimics that of a mischievous toddlers tantrums. She can see herself stomping her feet, kicking and screaming: I dont want to go, please let me stay!
If only it was that simple. Sadly, for Nunes, its not. On 15 December, after more than a decade as part of UCTs Student Housing and Residence Life family, based at the Graça Machel Hall residence on lower campus, she will bow out gracefully. But retirement is not for the faint hearted at least not for Nunes. With so many pending changes on the horizon, how could it be? As of January 2023, she will have more time than shell know what to do with the set routine shes worked hard to develop over the years will be a thing of the past and her days will be quiet there will be no chitter chatter and loud laughs with colleagues, and no students to reprimand.
Its all going to be very strange. Thats the best way for me to describe it.
Its all going to be very strange. Thats the best way for me to describe it. Its like a here today, gone tomorrow kind of thing, Nunes said.
Twelve years have passed at a rapid pace. After all, Nunes joked, time flies when you are having fun. For her, thats what work at Graça Machel Hall has been fun and always pleasant while surrounded by colleagues she has grown to love.
To new beginnings
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Nigerian Govt Approves New Retirement Age For Health Workers
The federal government has reached agreement with stakeholders in the health sector to grant new retirement age for workers in the sector.
Under the new condition of service, the retirement age of health workers has increased from 60 years to 65 years.
Also the retirement age for medical consultants is 70 years.
Government also requested for three weeks to consider proposals made by health workers under the auspices of the Nigerian Medical Association and Joint Health Sector Unions regarding enhanced hazard allowance.
Speaking to journalists after a meeting between the Presidential Committee on Salaries , relevant federal government stakeholders, health sector professional associations and trade unions on the issue of hazard allowance and retirement age for health sector workers in government health establishments at the Presidential Villa in Abuja yesterday, Minister of Labour and Enployment , Dr. Chris Ngige said that federal government had acceded to the request by the unions in the health sector to extend the retirement age of the workers.
“We made a lot of progress at today’s meeting, including approving new retirement age for health workers and taking their proposals on the new hazard allowance which the government side will go and study and come back with a decision on June 1”.
New Retirement Age Of 65 Years For Teachers To Be Implemented In December Ikpeazu
Governor of Abia state, Okezie Ikpeazu says his administration is committed to the implementation of new retirement age of 65 years and 40 years in service for teachers with effect from December this year.
Ikpeazu stated this Wednesday during the 2022 World Teachers Day in Umuahia, adding that his government has also reviewed the retirement age of university lecturers.
He expressed his hope that this new policy will help retain seasoned teachers and enable the transmission of knowledge through experience and mentorship of upcoming teachers in the state.
Represented by his deputy, Rt. Hon. Ude Oko Chukwu, Ikpeazu assured that his administration will re-double its efforts to see to the welfare of Abia teachers in terms of the payment of salaries and other emoluments and motivations to teachers for enhancement of exemplary performance.
He charged teachers in the state to ensure the state regains and retains its prime position in WASCE and other examinations.
He described the years theme, The Transformation of Education Begins With Teachers as apt and significant given the strategic and physical role teachers play in nation building, development and the recognition of their untiring efforts and commitment as basic moulders of childrens characters as the countrys future leaders.
He pleaded with the state government to address the issues of non-payment of salaries arrears and lack of promotion among others.
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