Benefits Planner: Retirement | Born in 1960 or later (2024)

FAQs

Benefits Planner: Retirement | Born in 1960 or later? ›

If you were born in 1960 or later, your full retirement age is 67 (En español) You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.

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.

In 1875, the American Express Company established the first private pension plan in the United States, and, shortly thereafter, utilities, banking and manufacturing companies also began to provide pensions.

Anyone born in 1960 or later, receives their full benefit at 67. But some retirees choose to wait even longer. You may wait until as late as age 70 and claim a bigger check, but you won't receive any bigger benefit for delaying longer. So, what is the upside to delaying your Social Security benefit after age 62?

It's never too late to start saving for retirement. Even if you'd like to retire in 5 or 10 years and have little to nothing saved—it's still not too late. Start small, and don't just save—invest.

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

It's possible your current living expenses may surpass your Social Security benefit amount, so you decide to take your benefits early because you can't wait for a larger payout later. Or, you're drowning in debt, and taking benefits now will help.

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.

If you retire with no money, you'll have to consider ways to create income to pay for your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck.

What to do if you are 60 and have no retirement? ›

Fidelity says you should have eight times your salary saved for retirement by age 60. If you have nothing saved so far, start building your nest egg immediately. Consider changes to your plans, like working longer, holding down a part-time job as a retiree, or using your home as a cash source.

The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

According to the SSA's Office of the Actuary, retired-worker beneficiaries who were 62 years old in December 2023 received an average check of $1,298.26.

If you were born in 1957 or earlier, you've already reached full retirement age. Under current law, if you were born in 1958 or later, your full retirement age can be anywhere between 66 and 8 months and 67 for those born in 1960 and after.