There is a lot of confusion when it comes to Social Security. The terms and acronyms can be difficult to understand, and often there is misleading information floating around the internet.
But we are here to help. Here are a few things seniors should know about Social Security to help them make informed decisions about their retirement.
“Full Retirement Age”
This article explains that the most confusion with Social Security terms and information surrounds the phrase “full retirement age.” This phrase refers to the age of 67 for those born during or after the year 1960.
However, the confusion often derives from individuals believing the phrase to mean that, upon reaching age 67, they are entitled to receive their full benefits from Social Security. This is a misconception.
Instead, the word “full” in this phrase is defined relative to the primary insurance amount (PIA). This amount is formed by using a formula of 3 percentages of average indexed monthly earnings, according to SSA.gov.
Bloomberg also explains that if an individual elects to delay retirement further, their benefits will continue to grow until they reach 70 years old. Upon reaching 70, the individual will then have the maximum benefits they can receive from Social Security.
Retiring and Claiming: Do They Need to Happen Together?
Another misconception: that retirement and claiming Social Security must occur at the same time. Individuals can claim Social Security and receive a portion of benefits while continuing to work.
Conversely, individuals with other retirement funds have the option to tap into those after retirement, holding off on claiming Social Security, thereby allowing their benefits to continue to grow.
There are many more terms and acronyms that can be confusing, and daunting, for individuals looking at retirement and Social Security for the first time.
If things ever get too confusing, the Social Security Administration has set up an online glossary to help.
More Financial Security
Looking for more ways to ensure your right to Social Security benefits is secure? The Senior Security Alliance is urging the politicians in Washington to protect senior citizens’ right to a more financially secure retirement. Check out what you can do to help urge Congress to pass The Senior Citizens Bill of Rights!
Then, make sure to follow us on Twitter and Facebook for regular updates and information.
