New Years Eve Babies and SS Full Retirement Age

[Another Reader]

My generation of cousins is collecting or will soon collect Social Security, so this is a big topic at family gatherings. Two were born on New Year's Eve, one on December 31, 1953 and one on December 31, 1957. Several of us remember reading somewhere that if you were born on December 31, for SSA purposes, you are treated as if you were born in January of the following year.

If that is correct, what is the best month for the cousin turning 62 in 2015 to file to start collecting? Is there any difference between filing for December 31 or sometime in January? Will either the amount paid or the timing of the first check change?

For the cousin born on December 31, 1957, the FRA increases every year. Would his FRA be higher because he is treated as if he was born in 1958?

Can someone point me to the place on the SSA website where this is discussed, if there is one, or to another reliable source?

Thanks in advance for your help.

 

[Willers]

That is correct:

Code of Federal Regulations § 404.102

According to the SSA:
"Age means how many years old you are. You reach a particular age on the day before your birthday. For example, if your sixty-second birthday is on July 1, 1979, you became age 62 on June 30, 1979."

 

[golfnut]

That is correct:

Code of Federal Regulations § 404.102

According to the SSA:
"Age means how many years old you are. You reach a particular age on the day before your birthday. For example, if your sixty-second birthday is on July 1, 1979, you became age 62 on June 30, 1979."

If that is the case and your b-day is Dec. 31st., then one would turn 62 on Dec. 30th?

 

[Willers]

If that is the case and your b-day is Dec. 31st., then one would turn 62 on Dec. 30th?

Sorry, I was reading it backwards. It will affect the birth year for the 1/1 birthday, but not the 12/31 birthday. Thanks golfnut for pointing out my error.

 

[Another Reader]

We apparently got this backwards. If I understand you correctly, the cousin born in 1957 will not have his FRA raised because he will be considered as being a particular age on December 30th. Someone born on January 1, 1958 would benefit because the 1957 rules would apply for FRA.

Is there any effect on payment timing if you are born the last day of the month or the year?

 

[Dreamer]

It effects your social security if you were born on the first or second day of the month. One must be 62 throughout the month in order to be eligible for a check. If you were born on 1/1, then you attain age 62 on 12/31 of the previous year, so you would be eligible for the month of January, since you would be 62 throughout the full month. The same is true, if you were born on the second of the month. You would attain age 62 one day prior on the first of the month, so you would be 62 throughout the full month. If you were born on the third day of the month or later, you would not be eligible for that month, since you would not be 62 throughout the full month. Your first month of eligibility would be February.