What Is Your Full Retirement Age (FRA)?
For anyone born in 1960 or later, including those born in 1964, the full retirement age (FRA) is 67. Your FRA is the age at which you become eligible to receive 100% of the Social Security retirement benefits you have earned. The FRA has been gradually increasing since 1983 due to legislative changes.
Early Retirement at Age 62
The earliest you can collect Social Security is age 62, but this results in a permanent reduction in your monthly payment. For someone born in 1964, claiming at 62 means a 30% reduction. If you work and earn above a certain limit before your FRA, your benefits may be temporarily withheld.
Delayed Retirement Until Age 70
Delaying benefits past your full retirement age can increase your monthly payment through delayed retirement credits (DRCs). For those born in 1964, each year you delay past 67, up until age 70, increases your monthly payment by 8%. There's no benefit to delaying past age 70 as no more credits are earned.
Comparison of Retirement Age Scenarios
| Retirement Age | Benefit Payout (vs. FRA) | Financial Implication | Best For... |
|---|---|---|---|
| 62 (Early) | Reduced by 30% | Lower monthly payment for life, but payments start earlier. | Individuals with a shorter life expectancy, an immediate need for income, or those who stop working due to poor health. |
| 67 (Full) | 100% of your primary benefit | No penalty for early claiming. | Those who want to collect their full, unreduced benefits. |
| 70 (Delayed) | Increased by 24% | Highest possible monthly payment for life due to delayed retirement credits. | Individuals with longer life expectancies, strong financial health, and a desire to maximize their monthly income for life. |
How to Plan for Your Retirement
- Estimate Your Benefits: Create a "my Social Security" account online to view your earnings history and benefit estimates for different retirement ages.
- Evaluate Your Health: Your health and family history of longevity significantly impact the decision.
- Consider Other Income Sources: Assess your other retirement savings like a 401(k) or pension.
- Discuss with a Financial Professional: A financial advisor can help you model scenarios based on your specific situation.
Conclusion
For someone born in 1964, the choice of when to claim Social Security involves deciding between age 62 (early), 67 (full), and 70 (delayed). This decision permanently impacts your monthly benefit. Claiming early at 62 results in a significant reduction, while delaying until 70 provides the maximum possible monthly payment.
Key Takeaways
- Full Retirement Age (FRA) is 67: If you were born in 1964, your full retirement age is 67.
- Claim Early at 62 for Reduced Benefits: Benefits can start as early as age 62 but are permanently reduced by 30%.
- Delay Until 70 for Maximum Payout: Waiting until age 70 increases your monthly benefit by 8% per year past FRA, up to 24% total.
- Health and Longevity Are Key Factors: Personal health and life expectancy influence the claiming decision.
- Create a "my Social Security" Account: Use the SSA website to view personal benefit estimates.
FAQs
Q: What is the earliest I can retire and start collecting Social Security if I was born in 1964? A: You can begin collecting Social Security retirement benefits as early as age 62, resulting in a permanent reduction of your monthly benefit.
Q: Will my Social Security benefits be reduced if I retire before age 67? A: Yes, claiming before the full retirement age of 67 will permanently reduce your monthly payment.
Q: How much will my benefit be reduced if I claim at age 62 instead of 67? A: Claiming at age 62 will result in a permanent 30% reduction compared to your full retirement benefit at age 67.
Q: Can I increase my Social Security benefits by delaying retirement past age 67? A: Yes, delaying after age 67 earns delayed retirement credits up to age 70, permanently increasing your monthly payment.
Q: How much can I increase my benefits by waiting until age 70? A: Delaying until age 70 can result in a monthly payment that is 24% higher than at age 67.
Q: Do delayed retirement credits apply to spousal benefits? A: No, delayed retirement credits apply only to your own Social Security benefits, not spousal benefits.
Q: Where can I get an estimate of my personal Social Security benefits? A: Create or sign in to your "my Social Security" account on the SSA website (ssa.gov/myaccount) for personalized benefit estimates.
Q: What happens if I continue to work while collecting early Social Security benefits? A: If you claim early and work, benefits may be temporarily reduced if earnings exceed a limit. At FRA, earnings no longer affect benefits, and the amount is recalculated.
