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In 2022, the Social Security Retirement Age Will No Longer Be Subject to Change.

The good news is that the full retirement age for Social Security benefits will rise again in 2022 for some people, but this will be the final year in which the age will rise.

For people born in 1960, the new full retirement age of 67 is the new age at which they can claim their full Social Security payment (and who will turn 62 this year). If Congress does not act, the full retirement age will remain 67 for anyone born after 1960.

A statute passed by Congress in 1983 imposed modifications in the full retirement age as a way to improve the program’s financial stability. The longer life expectancy and better health of older Americans were mentioned by politicians as reasons for this action.

A penalty is imposed if a worker begins receiving benefits at age 62 despite the fact that they have not yet reached full retirement age: Up to three years before reaching the full retirement age, a monthly pension is cut by 5/9 of one percent. The benefit is further lowered by 5/12 of one percent per month if the duration exceeds three years (or 36 months). For example, a person’s monthly Social Security payout would be lowered by 30% if they began collecting benefits at the ripe old age of 62.

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Individuals’ full retirement ages are based on their birth years, as shown in the table below:

  • 1943-1954: 66
  • 1955: 66 and 2 months
  • 1956: 66 and 4 months
  • 1957: 66 and 6 months
  • 1958: 66 and 8 months
  • 1959: 66 and 10 months
  • 1960: 67

As a result of the highest inflation since 1982, Social Security claimants in 2022 will see their payments rise by nearly four decades.

It was declared by the Social Security Administration last year that the COLA would rise by 5.9 percent. According to the administration, this means that the average retired person would now receive $1,657 per month, an increase of $92. As a result, a typical couple’s monthly benefits would rise from $154 to $2,754.

70 million people, including Social Security beneficiaries and handicapped veterans and federal retirees will be impacted by the modification. Social Security benefits contribute at least half of the income for around half of senior families, while about 25% rely on the monthly payment for almost all of their income.

This year’s rise is the largest since 1982, when recipients received a 7.4 percent raise, and it signals the end of years of modest COLA increases due to low inflation.

The average annual growth in the Consumer Price Index (CPI) has been just 1.4 percent. Retirees will earn an extra $20 a month in 2021 due to a 1.3 percent rise.