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How we compute retirement benefits
Early or Delayed Retirement
Spousal benefits
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We sometimes call a retired worker the primary beneficiary,
because it is upon his/her primary insurance amount
that all dependent and survivor benefits are based.
If the primary begins to receive benefits at his/her normal (or full) retirement
age, the primary will receive 100 percent of the primary insurance amount.
If the spouse of a primary begins to receive benefits at his/her normal
retirement age, the spouse will receive 50 percent of the primary's
primary insurance amount.
The table below illustrates the effect of early retirement, for both a retired worker
and his/her spouse. For our illustration, we have used a $1,000 primary
insurance amount. With this primary insurance amount and both
primary and spouse retiring at their respective normal retirement ages, the
primary would receive $1,000 per month and his/her spouse would receive $500 per month.
The table shows that retirement at age 62 results in substantial reductions in monthly
benefits. Please note that relatively few people can begin receiving a benefit at
exact age 62 because a person must be 62 throughout the first month of retirement.
Thus most early retirees begin at age 62 and 1 month.
Primary and spousal benefits at age 62
(benefits based on a $1,000 primary insurance amount)
Year of birth a |
Normal (or full) retirement age |
Number
of reduction months b |
Primary |
Spouse |
Amount |
Percent reduction c |
Amount |
Percent reduction d |
1937 or earlier |
65 |
36 |
$800 |
20.00% |
$375 |
25.00% |
1938 |
65 and 2 months |
38 |
791 |
20.83% |
370 |
25.83% |
1939 |
65 and 4 months |
40 |
783 |
21.67% |
366 |
26.67% |
1940 |
65 and 6 months |
42 |
775 |
22.50% |
362 |
27.50% |
1941 |
65 and 8 months |
44 |
766 |
23.33% |
358 |
28.33% |
1942 |
65 and 10 months |
46 |
758 |
24.17% |
354 |
29.17% |
1943-1954 |
66 |
48 |
750 |
25.00% |
350 |
30.00% |
1955 |
66 and 2 months |
50 |
741 |
25.83% |
345 |
30.83% |
1956 |
66 and 4 months |
52 |
733 |
26.67% |
341 |
31.67% |
1957 |
66 and 6 months |
54 |
725 |
27.50% |
337 |
32.50% |
1958 |
66 and 8 months |
56 |
716 |
28.33% |
333 |
33.33% |
1959 |
66 and 10 months |
58 |
708 |
29.17% |
329 |
34.17% |
1960 and later |
67 |
60 |
700 |
30.00% |
325 |
35.00% |
a If you are born on January 1, use the prior year of birth.
b Applies only if you are born on the 2nd of the month; otherwise the
number of reduction months is one less than the number shown.
c Reduction applied to primary insurance amount ($1,000 in this example).
The percentage reduction is 5/9 of 1% per month for the first
36 months and 5/12 of 1% for each additional month.
d Reduction applied to $500, which is 50% of the primary insurance amount in this
example. The percentage reduction is 25/36 of 1% per month for the first
36 months and 5/12 of 1% for each additional month.
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