A baby boomers guide to Social Security
Not too long ago, it seemed all baby boomers were citizens of Woodstock Nation, convinced that they would never grow old. Now they all know better. The oldest baby boomers will turn 58 next year, and they are more likely to sing along with elevator music than with the new rock bands on MTV.
In just a few short years, around 2008, the first wave of these baby boomers will become eligible for Social Security retirement benefits. So here is a short guide to Social Security for those baby boomers who are soon to be senior boomers.
First, you have probably already heard your full retirement age is going up. Pegged at 65 for the first six decades of the program, the age at which a person can begin collecting full Social Security benefits is on its way up to 67.
But to give people time to plan for the future, this increase, which was part of the Social Security Amendments of 1983, did not begin until this year. And it is going up in gradual steps. People born in 1938 must be age 65 and two months to collect full Social Security benefits.
Those born in 1939 must be 65 and 4 months. The two-month per year increase continues until it reaches 66 for people born in 1943. The retirement age levels off at age 66 for many baby boomers — those born from 1943 through 1954 – then rises again in two-month increments until it reaches 67 for people born in 1960 and later.
Second, boomers should know that although Congress changed Social Security’s full retirement age, it did not change the early retirement age. It is still 62. But the reduction in your benefit for taking retirement at age 62 is gradually increasing from 20 percent to 30 percent over the next 20 years.
Third, there are certain facts of life that, in particular, baby boomer women need to be aware of. Boomer women will be the first generation of women who are more likely to get higher benefits on their own Social Security record than on a spouse’s record. Boomer women are also more likely than earlier generations to have been divorced.
And boomer women who are married are likely to outlive their husbands. All of these situations can affect their Social Security entitlement and, for that reason, boomer women should check out Social Security Information for Women at www.socialsecurity.gov/women.
And here is a final tip for baby boomers of both genders: think online. Most boomers are now comfortable using computers to conduct business, so they expect and appreciate online government services. And Social Security delivers.
Boomers can use our online retirement planners and calculators to figure out how future Social Security benefits will fit into overall financial plans – www.socialsecurity.gov/planners.
And as they edge ever closer to Social Security retirement age, they can file for their benefits online – www.socialsecurity.gov/applytoretire. All this and more is available at www.socialsecurity.gov.