Historical Changes to Social Security Retirement Age
The Social Security Act Amendments of 1983 gradually increased the full retirement age (FRA) from 65 to 67. This change, aimed at ensuring the program's long-term solvency due to rising life expectancies, began affecting individuals born in 1938 and later. The increase was phased in over several decades, with the final FRA of 67 applying to those born in 1960 or later.
How Your Birth Year Determines Your Full Retirement Age
Your birth year dictates your specific full retirement age. The earliest age to claim benefits remains 62, but this results in a permanent reduction. The SSA provides a schedule for how the FRA increased based on birth year. For those born in 1937 or earlier, the FRA is 65. For those born between 1938 and 1942, the FRA increases incrementally. The FRA is 66 for those born between 1943 and 1954, and increases incrementally for those born between 1955 and 1959. For individuals born in 1960 or later, the FRA is 67.
Early vs. Full vs. Delayed Retirement: What's the Difference?
Choosing when to start Social Security benefits significantly impacts your monthly payout. Early retirement (as early as age 62) allows you to receive benefits sooner but results in a permanent reduction, potentially up to 30% for those with an FRA of 67. Full retirement at your FRA means receiving 100% of your earned benefit with no reduction. Delayed retirement (until age 70) earns delayed retirement credits, increasing your benefit by 8% for each year delayed past your FRA, up to age 70.
Comparison of Claiming Ages for Someone with a Full Retirement Age of 67
Here is a comparison table for someone with an FRA of 67, assuming a $1,000 monthly benefit at full retirement age:
| Feature | Claiming at 62 (Early) | Claiming at 67 (Full) | Claiming at 70 (Delayed) |
|---|---|---|---|
| Monthly Benefit | ~ $700 (30% reduction) | $1,000 (100% of benefit) | ~ $1,240 (124% of benefit) |
| Total Lifetime Benefits | More smaller payments; total depends on longevity. | A middle ground. | Fewer larger payments; potentially higher total for longer lifespans. |
| Survivor Benefits | May affect survivor benefit amount. | Ensures highest possible survivor benefit. | Higher monthly amount transfers to surviving spouse. |
| Eligibility for Work | Subject to earnings test below FRA. | Not subject to earnings test. | Not subject to earnings test. |
Potential Future Changes to Retirement Age
While the FRA is currently 67 for those born in 1960 or later, ongoing discussions about Social Security's long-term financial health mean future changes are possible. As life expectancies rise, policymakers may consider further adjustments to the FRA, though no official changes have been enacted. Staying informed is crucial for retirement planning.
Conclusion
Yes, the full retirement age for Social Security has increased due to 1983 legislation, moving from 65 to 67 for those born in 1960 or later. This change was implemented gradually in response to increased life expectancies and the program's financial outlook. Your birth year is the key factor in determining your FRA. Deciding when to claim benefits—early, at full retirement age, or delaying until 70—has a permanent impact on your monthly income. Consulting the Social Security Administration for personalized information is recommended.
External Resource
- Social Security Administration: Retirement Planner - Get information on how retirement age affects your benefits from the official source. {Link: SSA website https://www.ssa.gov/benefits/retirement/planner/agereduction.html}
