Important Facts About Social Security Retirement Benefits

• The Social Security Normal Retirement Age, currently 66 for those people born between 1943 and 1954, is gradually increasing to age 67 for persons born after 1954.

• Early retirement results in a permanent reduction in the Social Security retirement benefit. For example, the Social Security retirement benefit of a worker born between 1943 and 1954 who retires early at age 62 will be reduced by 25%.

According to the Social Security Administration:
• The maximum Social Security retirement benefit for a worker retiring at full retirement age in 2009 is $2,323 monthly.
• The average Social Security benefit for all retired workers in 2009 is $1,153.

• The Social Security spousal retirement benefit is limited to a maximum of 50% of the retired worker’s benefit. The spousal retirement benefit is reduced if the worker retires before his or her full retirement age.

• How much do you want to rely on a source of retirement income over which you have no control? Consider this quote from a Time Magazine article titled "Social Insecurity":

“For government to pay pensions to the advancing tide of baby boomers will almost certainly require stunning benefit reductions or huge tax increases. Most likely both. After years of fiscal and political fecklessness, an explosive conclusion.”

Question: When was this article published?
Answer: March 12, 1995, although the same statement could easily apply today, in the absence of any reform to the Social Security system.

The information, general principles and conclusions presented are subject to local, state and federal laws, regulations, and court cases. While every care has been taken in the preparation of this report, VSA is not engaged in providing legal, accounting, financial or other professional services. This report should not be used as a substitute for the professional advice of an attorney, accountant, or other qualified professional. © VSA, LP

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