Guide to Retirement Old-Age Insurance

Retirement Insurance benefits (RIB), or Old Age Insurance, are available to United States citizens under the Social Security Administration (SSA). Retirement insurance is distributed to those who have reached full retirement age, as dictated by the SSA, or have been forced to retire due to a disabilityAn applicant may only apply for Old Age Insurance after reaching full retirement age.

As the standard for retirement age is changing, this depends on the year in which the applicant was born. Another factor involved is English common law which declares a person to be of a certain age on the day prior to the actual birthday. If an applicant's birthday is January 1st, and that is when they are to reach full retirement age, that applicant can submit their application based on the retirement age assigned to the previous year. At present, the retirement ages are assigned by the Social Security Administration as follows:

If the applicant is born between the years of 1943 and 1954, the full retirement age is 66.

If the applicant is born in 1955, the full retirement age is 66 and two months.

If the applicant is born in 1956, the full retirement age is 66 and four months.

If the applicant is born in 1957, the full retirement age is 66 and six months.

If the applicant is born in 1958, the full retirement age is 66 and eight months.

If the applicant is born in 1959, the full retirement age is 66 and ten months.

If the applicant is born in 1960 or later, the full retirement age is 67.

An old age insurance applicant may retire prior to the full retirement age, however, this will affect the amount of retirement benefits received. The SSA notes 62 as the earliest age for early retirement. If applying for retirement at the age of 62, the applicant may receive their retirement insurance with a 25 percent reduction.

An applicant may also retire later than their full retirement age. Doing so will increase the amount of benefits received. The SSA notes the age of 70 as the limit on the percentage increase of benefits for those that have decided to delay retirement.

Applicants may also continue to work while receiving Retirement Insurance benefits. The benefits package will not be affected unless the applicant's earnings exceed certain limitations prior to reaching full retirement age as established by the Social Security Administration. Old Age insurance benefits may also be taxable depending on the earnings of the applicant.

If filing taxes as an Individual:

If combined earnings fall between $25,000 and $34,000 annually, Old Age Insurance benefits can be taxed up to 50 percent.

If combined earnings is greater than $34,000 annually, Retirement Insurance benefits can be taxed up to 85 percent.

If filing taxes along with a spouse:

If combined earnings fall between $32,000 and $44,000 annually, Old Age Insurance benefits can be taxed up to 50 percent.

If combined earnings fall are greater than $44,000 annually, Retirement Insurance benefits can be taxed up to 85 percent.