members willreceive.
The reduction in the benefit for early retirement is about 5/9of one percent for every month before the normal retirement ageup to 36 months or 3 years. But if the difference between thenormal retirement age and the applied retirement age of themember exceeds 36 months or 3 years an additional deduction of5/12 of 1% per month is employed.
(Article continued below)
In the case of retiring members whose normal retirement age of66 but chooses to retire at the age of 62 then a total offorty-eight months is going to be deducted. The reduction of 48months is split in the following manner: the first 36 months is5/9 of 36% or 20% while the remaining 12 months is computed as5/12 of 12% or 5% which sums it up to a total reduction of 25%in the retirement benefit.
In addition to the increase in the retirement benefit fordelayed retirees there is also the so-called delayed retirementcredit which is given for those members that would retire afterthe normal retirement age. However, in order for members toavail of such benefit it is important that they must be insuredat the time they reach the normal retirement age or else nocredit will given to them even after they reach the age of 69.
For comments and suggestions about the article kindly visit Social Security Attorney
About the author:Jinky C. Mesias is a graduate of Bachelor of Science in BusinessAdministration Major in Business Management. She is at presentan Associate Manager of a Life Insurance Corporation and afreelance writer.
