What is Full Retirement Age (FRA)?
Your Full Retirement Age (FRA) is the age set by the Social Security Administration (SSA) when you are entitled to receive 100% of your calculated Social Security benefit [1]. This benefit amount is based on your earnings history. Claiming benefits before your FRA results in a permanently reduced monthly payment, while waiting until after your FRA (up to age 70) increases your monthly benefit [1]. Knowing your FRA is crucial for making informed decisions about when to start claiming benefits.
The Full Retirement Age Chart
The following chart shows the FRA based on your birth year, as established by Congress in 1983 [1].
| 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 or later | 67 |
Note: If your birthday is on the first of the month, the SSA treats it as if you were born in the previous month.
How Claiming Age Affects Your Benefits
Your decision on when to start receiving benefits significantly and permanently impacts the amount you will receive each month [1].
Claiming Early: Benefits at a Reduced Rate
You can begin receiving retirement benefits as early as age 62 [1]. However, claiming before your FRA results in a permanent reduction in your monthly benefit amount. The reduction percentage depends on how early you claim [1]. For example, if your FRA is 67, claiming at age 62 results in a 30% reduction. If your FRA is 66, claiming at 62 results in a 25% reduction [1]. The reduction is calculated on a monthly basis [1]. If you claim early and continue working, your benefits might be temporarily reduced if your earnings exceed a specific limit [2]. These withheld funds are not lost and will increase your monthly payment once you reach your FRA [1].
Delaying Benefits: Earn Delayed Retirement Credits
For each year you delay claiming benefits past your FRA, up to age 70, you earn Delayed Retirement Credits (DRCs) [1]. These credits substantially increase your monthly benefit [1]. For every year you wait past your FRA, your benefit increases by 8% until you reach age 70 [1]. No additional credits are earned after age 70 [1]. Someone with an FRA of 67 who waits until age 70 could see a 24% increase over their full benefit amount [1].
Understanding How Your Benefits are Calculated
The amount of your monthly Social Security benefit is based on your earnings history [1]. The SSA calculates your Average Indexed Monthly Earnings (AIME) using your highest 35 years of inflation-adjusted earnings [1]. This AIME is then used to determine your Primary Insurance Amount (PIA), which is the benefit you receive at your FRA [1]. If you have worked fewer than 35 years, zero-earning years are included in the AIME calculation, potentially lowering your benefit [1]. Working more than 35 years can increase your benefit if a new high-earning year replaces a lower one in the calculation [1].
Key Strategies for Maximizing Your Social Security Benefits
To optimize your Social Security benefits, consider the following:
- Work for at least 35 years to avoid zero-earning years in your calculation [1].
- Delay claiming benefits until age 70 if possible to earn the maximum Delayed Retirement Credits [1].
- Regularly review your earnings record online via your my Social Security account to ensure accuracy [1].
- If married or divorced, explore potential spousal benefits based on a spouse's or ex-spouse's earnings history [1].
- Consider your health and expected lifespan; delaying benefits can provide a long-term advantage if you anticipate living a long life [1].
- Consult a financial advisor for personalized guidance on your claiming strategy [1].
Conclusion
Your Full Retirement Age (FRA) is the determining factor for receiving 100% of your Social Security benefits, and this age varies based on your birth year [1]. By understanding your specific FRA and how different claiming ages impact your monthly benefit, you can make a well-informed decision that will affect your retirement finances for many years [1]. For the most accurate and personalized information, always refer to the official resources provided by the Social Security Administration [1]. Visit the Social Security Administration's Website for More Information
