Hailey
For decades, 65 was the standard age for retirement in the United States. It was a milestone people eagerly looked forward to, marking the beginning of a new chapter in life.
But now, the rules have changed. The Full Retirement Age (FRA) for Social Security benefits has gradually shifted to 67 for those born in 1960 or later.
This change affects millions of Americans who are planning their retirement, making it more important than ever to understand how and when to claim benefits.
What is Full Retirement Age?
The Full Retirement Age is the age at which you can claim full Social Security benefits without any reductions.
Claiming benefits before reaching your FRA reduces your monthly payments permanently, while delaying them increases your monthly benefit.
Planning around FRA is key to maximizing your retirement income.
Full Retirement Age by Year of Birth
| Year of Birth | Full Retirement Age |
|---|---|
| 1937 or earlier | 65 |
| 1938 | 65 years, 2 months |
| 1939 | 65 years, 4 months |
| 1940 | 65 years, 6 months |
| 1941 | 65 years, 8 months |
| 1942 | 65 years, 10 months |
| 1943–1954 | 66 |
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 or later | 67 |
The Benefits of Delaying Social Security
Delaying your Social Security benefits beyond your FRA can significantly increase your monthly payments. For each year you delay, up to age 70, your benefits grow by roughly 8% per year.
This strategy can make a big difference in lifetime income, especially for those who expect to live a long, healthy retirement.
Early Retirement and Its Impact
If you choose to claim Social Security at age 62, the earliest possible age, your monthly benefits will be permanently lower—approximately 30% less than waiting until your FRA of 67.
While early retirement may be appealing, it can have a long-term financial impact that must be carefully considered.
Planning for the Future
With the FRA set at 67 for most people born in 1960 or later, retirement planning has become more complex.
Many Americans now need to work longer or save more to ensure a comfortable retirement.
Life expectancy, health, and personal financial needs should all factor into decisions about when to start collecting Social Security.
The rise of the Full Retirement Age to 67 represents a major shift in how Americans plan for retirement. Retiring at 65 is no longer the standard if you want full benefits.
By understanding your FRA, evaluating your personal finances, and considering delaying benefits, you can make informed decisions that maximize your Social Security income and secure your future.
Frequently Asked Questions
Can I retire at 65 and still receive Social Security?
Yes, but your benefits may be reduced if you retire before your Full Retirement Age of 67.
How much can I increase my benefits by delaying Social Security?
Your benefits grow roughly 8% per year for each year you delay beyond your FRA, up to age 70.
What is the earliest age I can claim Social Security?
The earliest you can start receiving benefits is 62, but monthly payments will be permanently reduced.