From the time that every person begins a work career, they are made aware that they can retire at age 65 and receive monthly social security checks for the rest of their life. At 65 you get full benefit but if you retire early at 62, you are entitled to 80% of the "full benefit".
Over the last few years, things have changed a little. I think at this point Grasshoppers, you must reach age 67 to get full benefit and 80% at age 64. You can still opt to retire at 62 but you get a reduced 1/2% of full benefit for each month before age 64 that you make your selection. I actually think that if you retire early enough, you pay the government for the privledge.
Us older people with birthdays in the year 1940 had to wait until age 65 years, 6 months to officially retire at full benefit. For myself, that official date would be later in October but the rule is "the benefit begins in the month that you reach 65 years, 6 months".
So it is finally here, October, 2005. I qualify for the full retirement benefit. Hallileuyah! It is a hollow celebration since I started drawing benefits 3 years 6 months ago.
The truth is I started drawing benefits at age 62. I figured I'd get a reduced amount, actually about 77% of the eventual full benefit. But Grasshoppers, I get that 77% for 3 years, 6 months before I could have started to draw full benefit. I figure that if I reach age 80, I would have received equivalent dollars. Who knows what kind of health I'll have at 80 (if I make it). Also, the rules of social security could change again. Give me the cash!
So for the full month of October, I can gloat that I made it to my official retirement age and qualify for full social security.
Who would have thunk it!
Work hard Grasshoppers. You too may reach your extended retirement date, choose reduced benefits and cash you checks on the bus.
Love,
Dad