Understanding the Full Retirement Age (FRA)
Your full retirement age (FRA) is the age at which the Social Security Administration (SSA) considers you eligible to receive 100% of your basic Social Security benefit, also known as your Primary Insurance Amount (PIA). The FRA is not the same for everyone; it was increased by Congress in 1983 to account for longer life expectancies. The age increase is gradual, affecting those born from 1938 onward, and plateaus at age 67 for everyone born in 1960 or later.
For many retirees, deciding when to start collecting benefits is a pivotal financial decision. While you can begin receiving a reduced benefit as early as age 62, waiting until your FRA means you receive your full, unreduced benefit. Waiting even longer, up to age 70, can result in delayed retirement credits that increase your monthly payment even further.
Full Retirement Age by Birth Year
The SSA has a specific schedule outlining the full retirement age based on the year you were born. Understanding where you fall on this chart is the first step toward knowing when you can collect your full benefit. Here is a breakdown of the FRA based on birth year:
| Year of Birth | Full Retirement Age |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
How Claiming Early Affects Your Benefits
For those who choose to claim Social Security before their full retirement age, a permanent reduction in benefits is applied. The earliest age to claim is 62, and the reduction percentage depends on how many months you claim before your FRA.
The Permanent Reduction
The reduction for claiming early is permanent and can significantly impact your monthly income throughout your retirement. The amount of the reduction is five-ninths of 1% for each of the first 36 months you claim early. If you claim more than 36 months early, your benefit is further reduced by five-twelfths of 1% per month.
For example, if your FRA is 67 and you start benefits at age 62, you are claiming 60 months early. This would result in a permanent 30% reduction in your monthly benefit. For a couple, the decision to claim early for the higher earner can also negatively impact the survivor benefit for the remaining spouse.
The Advantage of Delayed Retirement
On the other hand, delaying your Social Security benefits beyond your FRA can be a powerful way to increase your monthly income. For every month you delay, up until age 70, you earn delayed retirement credits (DRCs).
Earning Delayed Retirement Credits
The value of these credits is 8% per year for everyone born in 1943 or later. This means that if your FRA is 67, and you wait until age 70 to collect, your monthly benefit will be 24% higher than your full retirement amount, plus any cost-of-living adjustments (COLAs).
For a person with a longer-than-average life expectancy, this can lead to a substantial increase in lifetime benefits. It also provides a larger benefit for a surviving spouse, offering greater financial security for the remaining partner.
Making an Informed Decision
Deciding when to take your Social Security benefits is a personal choice that requires careful consideration of various factors. While the government provides the rules, your specific situation should dictate your strategy.
Key considerations include your current financial needs, health status and life expectancy, and other retirement income sources. For example, if you are in poor health or have a shorter life expectancy, claiming earlier might be the right choice to receive benefits for a longer total period. Conversely, if you are in good health and have other retirement income, delaying your claim could be a beneficial strategy.
It's important to remember that benefits claimed are intended to be actuarially equivalent over an average lifespan. This means that, on average, a person should receive a similar total amount in lifetime benefits regardless of when they claim. However, because life is not average, and each person's longevity and needs are different, your individual strategy is critical.
Using the Social Security Administration's Resources
The SSA provides valuable tools and resources to help you make this decision. You can create a personal “my Social Security” account on their website to see your personal retirement benefit estimates at different start ages and view your earnings record.
This is a critical step, as your benefit amount is based on your highest 35 years of indexed earnings. Checking your earnings record ensures that the information is correct and that you receive the maximum benefit you're entitled to based on your contributions. Visit the official SSA website for personalized calculators and statements: Social Security Administration.
Conclusion
There is no one-size-fits-all answer to the question, "At what age can you get 100% of your Social Security?" The answer is determined by your birth year, and the age can range from 66 to 67. However, this is just the starting point for a thoughtful and strategic retirement plan. By understanding the implications of claiming early versus delaying, and by utilizing the resources available through the Social Security Administration, you can make an informed decision that best serves your long-term financial goals.
