Here are six keys you should be aware of if you’re curious about 2023 Social Security earnings caps, the full retirement age, and average benefits.
Remember that there are always exceptions to Social Security rules and that they can change. Always refer to the Social Security Administration’s website, SSA.gov. For information on your benefits, you can also go into your Social Security account online.
What makes 67 years old so unique? This is often referred to as Full Retirement Age, or the age at which you can start earning your entire retirement benefit. You can take a portion of your benefits and retire early. According to SSA.gov, your benefits will increase to the full amount after you attain FRA. Your Primary Insurance Amount, or PIA, is that sum.
Your FRA is 66 if you were born in the years 1943 through 1954. It steadily rises depending on the year you were born, as seen in the chart below. Your full retirement age is 67 if you were born in 1960 or later.
For those who were born between 1945 and 1956, FRA begins at age 66 and increases by two months. Individuals who were born in 1962 or after can retire at age 67.
|Year of Birth||Full Retirement Age|
|1943 – 1954||66|
|1955||66 and 2 mos.|
|1956||66 and 4 mos.|
|1957||66 and 6 mos.|
|1958||66 and 8 mos.|
|1959||66 and 10 mos.|
|1960 or later||67|
124% of Your Benefits—How Does That Sound?
If you petition for benefits prior to reaching full retirement age, you might be curious about the amount that would be deducted from them. It depends, is the response. Individual retirement benefits, spousal benefits, and survivor benefits all have different percentages.
The graph below shows the percentage of benefits you’ll receive between years 60 and 70 if your full retirement age is 67.
|Filing Age||% of Individual Benefit||% of Spousal Benefit||% of Survivor Benefit|
But, there is also good news. The amount of your Social Security payment will increase by a whopping 124% if you wait until you are 70 to apply for benefits.
Your benefits will decrease each month until you reach full retirement age. You will lose 5/9 of 1 percent of your benefits each month for the 36 months prior to reaching full retirement age. by.a. a a a. of the community of the world.. in theation:.a the. the W.
Your benefits will rise each month by a quarter of one percent until you reach full retirement age, up to age 70.
If your earnings go over a specific threshold, the Social Security Administration may also lower your payments even further until you reach full retirement age. The Social Security Administration considers wages and net self-employment income toward your earnings ceiling, but excludes pensions, dividends, annuities, IRA distributions, capital gains, and interest income.
Your earnings cap is $21,240 from age 62 until the year you reach full retirement age. Your reward will be diminished by $1 for each additional $2 beyond the cap. You will have an earnings cap of $56,520 the year you reach full retirement age, and your benefits will be lowered by $1 for every $3 that you earn in excess of that cap.
The earnings cap is eliminated once you reach full retirement age, and you are then eligible to receive all benefits regardless of any additional income you may have.
You can use the following calculation to determine your payments at full retirement age if you first became eligible for Social Security benefits in 2023 as a result of turning 62 or being disabled:
90% of your average indexed monthly income for the first $1,115; 32% of your average indexed monthly income for the next $1,115 up to $6,721; and 15% of your average indexed monthly income for the remaining $6,721.
By logging in at SSA.gov, you can also access your MyBenefits account to view your benefits.
In the United States, the average Social Security benefit is $1,827. The typical amount for the household in cases of married couples receiving benefits from both partners is $2,972. It makes sense that many people worry about their retirement years or even want to postpone retirement altogether.
Social Security Disability Insurance (SSDI) is typically $1,483. SSDI recipients are allowed to make up to $1,470 (or $2,460 if they are blind) every month while still receiving their benefits. Also, individuals are permitted to keep their benefits while working a trial shift for up to $1,050 a month.