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William Schantz – Retiree Ages Determine Retirement Benefits

Retirement Benefits

Your retirement benefits plan, such as your pension or provident fund, is a specific amount of money you become eligible for after retirement. You can receive your retirement benefits before or after your full retirement age in your 60s.

William Schantz emphasizes personal retirement benefit planning to take full advantage of your benefits and cater to your needs. The planning depends on individual circumstances, and both decisions have advantages and disadvantages.

William Schantz shares a gist of retiree age’s impact on the retirement benefit and how it changes the total benefit you or your spouse receives.

Retirement Age Recap by William Schantz

The Social Security Services has mandated a full retirement age. Retirees become eligible for their full or unreduced Social Security retirement benefits only after that certain age. It’s an exact metric, and the month and year are calculated based on your birth year.

William Schantz highlights that people born on January 1st of any year need to enter the previous year as their birth year.

Before Congress passed a law in 1983, the normal retirement age for people was 65 years. But the age bar changed since the maximum life span increased, and people remained healthy and active for longer. The full retirement age is different for people born in 1938 and later.

For every birth year, the retirement age inches forward a few months. The tenure has stretched far enough for the full retirement age of people born in 1960 and the later years to be 67.

Retirement Benefits Planning Options by William Schantz

The retirement benefits are calculated from the previous month for people born on the first of any month. For the spouse of retirees, the benefits are reduced to 50%, and the general percentage of benefits are rounded off figures.

In any case, you can start collecting your benefits early at 62 and receive them for longer. Or, you can delay them till you reach 70, and the benefit amount you receive will increase. Delaying benefits makes you eligible for delayed retirement credits that add to your total payment.

For people born in 1943-54, the normal retirement age is 66 years. If you fall in this age bracket and choose to retire early at 62, your $1000 retirement benefit will be reduced by 25% to $750. Your spouse’s $500 benefit will be reduced by 30% to $350.

If you were born in 1960 or later, your full retirement age is 67. If you opt to retire early at 62, your retirement benefits will be reduced by 30% to $ 700. Your spouse’s benefits will be reduced by 35% to $325.

William Schantz suggests calculating your exact percentage reduction on the social securities website.

William Schantz Suggests Receiving Medicare Benefits on Time

While the decision to retire early and delay their benefits is the prerogative of retirees, it’s heavily suggested that they apply for Medicare benefits within three months of reaching their full retirement age. If you choose to delay your Medicare benefits, you will pay extra money for prescription drug coverage and Medicare medical insurance.