In this chapter, we will discuss the different types of compensation, provide. an understanding of the safe harbor rules, calculate and evaluate the. compensation test (Demo 9), look at compensation limitations, and explain. which definition of compensation is needed for the worksheet questions.
To draw full retirement benefits, the following Social Security Administration age rules apply: Born in 1937 or earlier-Full retirement can be drawn at age 65. Born in 1938 - Full retirement can be drawn at age 65 years and 2 months.Born in 1939 -- Full retirement can be drawn at age 65 years and 4 months.ou can retire as early as age 62, but if you retire before your full retirement age, your benefits will be permanently reduced, based on your age. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age.
The earlier you start drawing Social Security, the smaller your monthly payment will be. If you start at 62, you will receive 25 percent less per month than you would at your full retirement age of 66 (if you were born between 1943 and 1954).For those born later, the reduction grows gradually to 30 percent.The retirement age is 67 for people born in 1960 or later.For those born between 1955 and 1959, a few months are added each year to bridge the gap from 66 to 67. If you can wait until youâre 70 to claim Social Security, your monthly payment will be 32 percent more.f you start at 62, you will receive 25 percent less per month than you would at your full retirement age of 66 (if you were born between 1943 and 1954). For those born later, the reduction grows gradually to 30 percent. The retirement age is 67 for people born in 1960 or later.