US FULL RETIRE AGE WILL STOP CHANGE IN 2022: WHAT YOU NEED TO KNOW

Social security undergoes important changes almost every year. This includes an annual increase in benefits, if the consumer price index shows an increase in spending, as well as the amount of income subject to Social Security tax. But this year something special will happen.

In recent years, the full retirement age for new Social Security recipients has changed. However, 2022 will be a turning point - this year it will happen for the last time. The social security rule will no longer change under current law.

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What you need to know:

y Retirees are eligible for Social Security retirement benefits for the first time when they turn 62, but this incomplete retirement age;

y claiming benefits at age 62 or any time before full retirement age is considered an early claim;

y Early applications incur early filing penalties that reduce monthly payments. These penalties apply to each individual month you receive benefits.

y Full Retirement Age (FRA) is determined by the year of birth. It was gradually replaced by amendments to the Social Security Act in 1983. Because the FRA shifts

For new recipients, every group that has turned 62 in recent years will have to wait a bit to start receiving their Social Security checks if they want a standard payment.

But this won't go on forever. Everyone who turns 62 in 2022 or later will have the same FRA.

How will this affect new retirees? Previously, the year of birth influenced when pensioners began to receive social benefit. Sometimes it was a question of several months:

• 1943-1954 - 66 years

• 1955 - 66 years and 2 months

• 1956 - 66 years and 4 months

• 1957 - 66 years and 6 months

• 1958 - 66 years and 8 months

• 1959 - 66 years and 10 months

• 1960 and later - 67 years

That is, for everyone who turns 62 in 2022 or later, the full retirement age will be 67 years. These people must wait until this age to avoid an early application penalty.

For example, those who turned 62 last year could receive their standard benefit at 66 years and 10 months, while those who reached that milestone in 2020 could apply at 66 years and 8 months without penalty.

There's also a chance that Congress could make further changes to Social Security law and reschedule the FRA for future retirees. But if that doesn't happen, then anyone who becomes eligible for Social Security retirement benefits for the first time this year or in the future will no longer need to delay starting payments just to get full benefits.