The Full Retirement Age for a 1960 Birth Year
If you were born in 1960, your full retirement age (FRA) is 67. This means you become eligible for 100% of your Social Security benefit at age 67. Individuals born in 1960 will reach age 67 in 2027.
This age differs from the long-held FRA of 65. The change was part of the Social Security Amendments of 1983, which gradually raised the FRA to account for increased life expectancies. The FRA for those born between 1955 and 1959 increased incrementally, while those born in 1960 were the first group for whom the FRA became a full 67.
What Exactly is 'Full Retirement Age'?
Your full retirement age is when you receive your primary insurance amount (PIA), which is your full, unreduced monthly Social Security benefit. You can claim benefits earlier or later, but this impacts your monthly payment amount permanently. Your decision depends on factors like health, income needs, and financial status.
Early vs. Delayed Retirement
Claiming Social Security benefits before or after your FRA has different consequences for those born in 1960.
Early Retirement
- Earliest Eligibility: Benefits can start as early as age 62.
- Benefit Reduction: Claiming early results in a permanent reduction. For those born in 1960, this reduction is about 30% if claimed at age 62.
- Example: A $2,000 PIA at age 67 would be about $1,400 per month if claimed at age 62.
Delayed Retirement
- Delayed Retirement Credits: For each month you delay claiming past your FRA (67 for those born in 1960) until age 70, you earn delayed retirement credits (DRCs).
- Benefit Increase: DRCs increase your monthly benefit by 8% annually for those born in 1943 or later.
- Benefit Cap: Benefit increases stop at age 70.
- Example: A $2,000 PIA at age 67 would be about $2,480 per month (124% of the full benefit) if claimed at age 70.
Comparison: Claiming Age and Benefits for a 1960 Birth Year
| Claiming Age | Benefit Payout | Total DRCs or Reduction | What It Means |
|---|---|---|---|
| 62 | ~70% of FRA benefit | 30% permanent reduction | More payments, but each is smaller. |
| 67 | 100% of FRA benefit | No change | Your full monthly benefit, based on your earnings history. |
| 70 | 124% of FRA benefit | 24% permanent increase | Fewer payments overall, but each is significantly larger. |
How Working Affects Your Benefits
If you work while receiving Social Security, the rules vary depending on whether you've reached your full retirement age.
- Before Your FRA (Age 67): If your earnings exceed an annual limit, your benefits may be temporarily reduced. In the year you reach your FRA, $1 is deducted for every $3 earned over the limit until the month you turn 67.
- At or After Your FRA (Age 67): Once you reach your FRA, your earnings do not affect your Social Security benefits. Additionally, higher earnings after reaching your FRA can increase your benefit if they surpass one of your 35 highest-earning years.
Navigating the Decision and Planning for Retirement
Choosing when to claim Social Security has long-term financial implications for those born in 1960.
- Consider Health and Life Expectancy: Good health and a history of longevity might favor delaying benefits for a higher total payout over time.
- Review Financial Needs: Assess if you need immediate income or can use other funds. Understand your cash flow requirements.
- Factor in Spousal Benefits: Your decision impacts potential survivor benefits for your spouse. A higher benefit for you can mean a higher survivor benefit for your partner.
- Access Official Information: For accurate details, consult the Social Security Administration website, which provides planners and calculators. Visit the official Social Security Administration website for more information.
Conclusion
The full retirement age for individuals born in 1960 is 67. This is a key factor in retirement planning. While claiming early (age 62) or delaying (up to age 70) is possible, the chosen age permanently impacts your monthly benefit. Carefully consider your health, financial situation, and goals when making this personal financial decision.
