Social Security benefit payments are released monthly to recipients. The amount of payment you receive depends on several factors including your age. How much social security will you get at age 63?
The Social Security benefits program started in 1935. People contribute to the program during their working years and receive the benefits in retirement. For people born between 1943 and 1954, the full retirement age is 66 years old. The full retirement age is 67 years for those born in 1960 or later. The size of your monthly payment will be reduced if you start collecting the benefits early.
How much social security will I get at age 63?
Although the earliest full retirement age is 66, you can start collecting the benefits at age 63. However, applying for Social Security benefits before the full retirement age will reduce your monthly benefit amount.
If you start collecting the benefits at age 63 when your full retirement age is 66, you would only receive 80 percent of what you would be eligible for at full retirement. Similarly, if you start taking the benefits at 63 when your full retirement age is 67, you would only receive 75 percent of your eligible amount at full retirement.
Recently, the average monthly Social Security retirement payment was $1,565. The maximum amount is $3,895. The Social Security monthly benefit amount gets adjusted annually in step with inflation. In 2022, the monthly benefit amount will increase by about 6 percent. That will add more than $90 to average earners' checks and more than $200 to the top earners.
At what age are Social Security benefits no longer taxed?
You can have a retirement job while receiving Social Security benefits. The benefits are intended to replace only 40 percent of your pre-retirement income. However, about 50 percent of retirees rely on a Social Security payment as their only source of income. That might not be enough to make ends meet for many people in retirement. Many seniors have part-time jobs to supplement their retirement benefits, which can help them have a better lifestyle in retirement.
If the combined income from retirement benefits and the part-time job exceeds a certain threshold, it gets taxed. However, the tax stops once you reach the full retirement age.
How long does it take to get the first Social Security check after applying?
If you plan to apply for Social Security benefits whether at 63 or at full retirement age, you’ll need to have some information on hand. The information includes your birth date, Social Security number, employment history, and bank account details. The application could get approved in the same month you apply or it could take up to three months to receive the first benefit.