In April, seniors will start getting paid more. The increase in Social Security payments will help about 2.8 million retirees who were affected by two federal rules before. The Social Security Administration (SSA) pays monthly payments to millions of people in the United States. The Social Security Fairness Act, which was just passed by both parties, will, however, mean that some seniors will get a lot more money starting in April. This bill was signed by President Biden right before he left office. It undid some cuts that had affected the payments of people in certain jobs who had not directly contributed to Social Security.
Starting in April, the pensions of 2.8 million seniors will go up
The extra money will help about 2.8 million retirees who were affected by two government programs called the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). This rule meant that people who made money in jobs where they didn’t contribute to Social Security had their income cut. These people are among those who are affected:
- Teachers
- First responders
- servants of the law
- Federal employees who are part of the Civil Service Retirement System Foreigners who work for social security
This policy also affected retirees who were eligible for benefits as surviving wives, even if they didn’t have paid into Social Security because they got a pension from their job. If it is taken away, these people will be able to get all the money they are properly owed in compensation. Because of this, beneficiaries will get a payment for the past year at the end of February. This is on top of the monthly raise that will start in April. Also, remember that all retirees who are qualified for the raise will get official letters from the Social Security Administration (SSA) in the mail. This message will go into great depth about the exact amount of the adjustment and who is eligible. Beneficiaries can figure out how much the raise will be by using the calculators on the Social Security website.
How old do you have to be to get all of your Social Security benefits?
Starting in 2025, you will have to be 67 years old to get full Social Security payments. Personal finance experts say that you should plan carefully to avoid problems. In 2025, people who turn 65 will have to wait a few years before they can get their full Social Security payments. This is a part of a change that began in 1983, when a law passed by the US Congress raised the full retirement age (FRA) from 65 to 67 over years. This change was made so that Social Security payments would last longer and take into account people living longer.
From now on, people born after 1960 will not be able to get their full Social Security payment until they are 67 years old. Even though the monthly payment will be a lot less, people can start getting payouts as early as age 62 if they’d like to. As a wealth strategist at Janus Henderson Investors named Ben Rizzuto says, waiting until you hit full retirement age can not only make sure that you get all of your benefits, but it can also make your spouse’s benefits better. If you wait until you are 67, your monthly payment will be higher. Say you start getting your benefit at age 62. It will be about 30% less than if you started getting it at age 62. Social Security also gives you an extra 8% until age 70 for every year you wait to retire.
A study by the Employee Benefit Research Institute in 2024 showed that the average age of retirement is still 62, even though many people plan to wait until they are 65. A lot of people have to quit earlier because of their health, problems at work, or because they can afford to. The poll found that 35% of workers retired earlier than planned because of problems like illness or being unable to work.
