A person can retire at age 62 and receive 80% of benefits. When they reach the age of 65, does the benefit continue at 80% or does it increase to 100%?
Actuarial reductions are permanent. The benefit remains 80% of the full amount. The actuarial reductions are generally intended to be income neutral. By starting benefits at a younger age, benefits are received longer so that total lifetime benefits are generally the same. 2.34 Is the Social Security-Administration considering a “reverse tapering” of benefits so that, to ensure that a person does not fall into poverty, one’s benefits will increase with the increased financial burdens as one ages? Such proposals have been considered but have not been enacted into law. Social Security beneficiaries do receive annual cost-of-living adjustments. This is not a common feature of private pensions.
