Security Retirement
Retirement is a numbers game in the United States and those numbers can make
a big difference in terms of the Social Security benefits you ultimately receive. For
Social Security purposes, the most important numbers to remember are: 62, 66, 67
and 70, all of which are ages that can have an impact on your retirement benefits.
Another age that was once important, 65 has little significance nowadays.
Let’s begin with 62. That is the age when you can first start claiming Social
Security Retirement Benefits, through a reduced monthly payment. The next two
ages: 66 and 67 are when you reach full retirement age (FRA), depending on your
birth year. The FRA is when you become eligible for unreduced Social Security
Retirement Benefits. Age 70 is when you are eligible for the maximum benefit.
Fidelity found that if you claim Social Security at age 62, rather than waiting
until your full retirement age, you can expect a 30% average reduction in monthly
benefits. For every year you delay claiming benefits past your full retirement
age, up to age 70, you will receive an 8% increase in your benefit. There is no
advantage to waiting past age 70 to collect.
Letter carriers under the Federal Employees Retirement System (FERS) have
a good chance to enjoy the Social Security benefits, when they retire with the
minimum retirement age, with the Special Annuity Supplement until reaching 62
If you start collecting Social Security at age 62, a typical retiree with 30 years of
service can easily receive more than $30,000 a year in benefits between FERS
and Social Security alone.
My wife Alice worked at Roosevelt Hospital and retired after 35 years of
service. She was 62 at the time and after a little calculation she realized it was
worth it for her to retire and collect Social Security along with her 1199 benefits.
Although, it turned out to be a good idea for us, retiring is a major life event and
all factors should be weighed before taking that step.
I continue to receive calls from retired members complaining that their re-
peated attempts to contact the Office of Personnel Management regarding their
issues have failed. This has been true for me as well. My best recommendation
is for you to read a very important article by our Director of Retired Members
Dan Toth in the April issue of the Postal Record on page 36. He explains in great
detail on how to log in to OPM. They would like each member to do so.
The projected COLA for the Civil Service Retirement System and the Federal
Employment Retirement System (FERS), which are based on the CPI increase
between the third quarter of 2024 is 1.1%. The 2024 COLA will be finalized with
the publication of the September 2023 CPI in October 2023.