Full retirement age varies according to the birth years of the individuals. There was a time when it used to be fixed to 65 years for every American. Over the years, Social Security beneficiaries have made several changes in the full retirement age. It was shifted to age 66 for people who were born between 1948 to 1954 but that led to the question of what is the full retirement age for someone born in 1955? It was later modified to the age of 67, for people who were born in 1955 or after that.
Social Security benefits help retirees in many ways. Some Social Security benefits can be attained; if early retirement is taken but most of them are given at full retirement age such as Medicare insurance.
Important Facts about Social Security Benefits
The full retirement age begins at age of 67 but the elderly citizens can start receiving them by the age of 62 as well. However, this will impact their full benefit amount. They will lose about 6.67% of the total benefit amount every year for 3 consecutive years and further, it will be decreased to 5% every year.
If an eligible person delays the collection of Social Security benefits; it raises the full amount by 8% every year till the age of 70. The initial amount which a person receives is locked forever.
Medicare and Full Retirement Age
Any elderly American who is at the full retirement age is liable to receive Medicare and other Social Security benefits. It means that SSA benefits will pay for Medicare on the behalf of the retiree as well as handle other health-related issues.
However, it is notable that at times enrollment in Medicare can impact the overall amount to be disbursed by the Social Security benefits.
A person enrolling for Medicare at the age of 65 can be delayed, depending on a person’s circumstances.
If an elderly American citizen decides to continue working even beyond 65 then his medical and healthcare are covered by the employer coverage. If Medicare is covered by employer coverage then it is advisable to delay the enrollment in Medicare.
A person needs to enroll themselves in the Initial Enrollment Period (IEP) within the first 7 months after their 65th birthday. This will save them from facing financial penalties for delayed enrollment. The IEP is scheduled to begin 3 months earlier than the 65th birthday and continues till 3 months after.
A 65-year-old retiree can be enrolled in Medicare automatically if he/she is already receiving either of the following benefits; Social Security benefits for Disability or Retirement, or the Railroad Retirement Board benefits.
Medicare is aided by Social Security
If a citizen is already receiving Social Security benefits or Railroad Retirement Board benefits; then Medicare is automatically deducted from the monthly benefit payment.
In case a person is not receiving Railroad Retirement Board (RRB) benefits or the Social Security benefits then they are liable to pay a bill called “Notice of Medicare Premium Payment Due”. This bill needs to be paid monthly either via direct deposit or money order. It can be paid through debit or a credit card and also through online bill payment portals.
What is the Full Retirement Age for someone born in 1955 and will they be exempted from Taxes?
The full retirement age for someone born in 1955 in 67 years and once they reach their full retirement age they are liable to be exempted from all the taxes. All the Social Security benefits, which they receive will be tax-free. If a person is still working and not retired then there might be some part of the benefits under taxation but that depends upon their work nature.
The IRS is supposed to add the figures of their earnings into the database, which will result in a deduction from the Social Security benefits but will still belong to the person. A person can always utilize the compounded amount once he/she retires and enjoys the retirement phase. The monthly retirement benefits continue to increase if a person still works after the full retirement age of 65.
A person born in 1955 and is enjoying his/her full retirement age is not eligible to file any income tax if he or she is earning less than $13,850.
In conclusion, it is always advisable to work until your physical and mental health allows you to. It helps you both monetarily and physically. The more actively you lead a life; the merrier you are. Social Security benefits are there to cover your difficult times but it is always best to rely on yourself.