Bad news for anyone born in 1947…due to an anomaly in the Social Security benefit calculation, anyone born in 1947 is on track to receive lower Social Security benefits than their peers.
Social Security’s benefit calculation formula involves a stipulation that from ages 60-62, neither your earnings or your benefits are adjusted for inflation.
So, how does this affect those who were born in 1947? Well, they just so happened to hit that 60-62 year mark during 2008, the year of the biggest Social Security inflation adjustment, 5.8%. The average person born in 1947 who receives average benefits will receive approximately $6,500 less during their first 21 years of retirement than those who were born in other years.
As one of the strongest lobbyist groups in America, it is only a matter of time before AARP starts calling for Congress to apply a band-aid to this situation that will bring those 1947ers up to speed with their peers.
{ 2 comments… read them below or add one }
Glad I was born in 48.
uh oh….who’s going to tell ‘you know who?’