The History Behind Social Security Retirement Age
For many years, the full retirement age (FRA) was a simple 65 for everyone. This was the case for individuals born in 1937 or earlier. However, citing increased life expectancy and a need to shore up the program's long-term financial stability, Congress passed legislation in 1983 to gradually increase the FRA. This change was phased in over several decades, starting with individuals born in 1938 and continuing until it reached 67 for those born in 1960 or later. This phased approach was designed to give workers ample time to adjust their retirement plans.
Today, the question "Is full retirement age 70 now?" stems from the continued public conversation around the program's long-term funding and the significant financial incentive to delay claiming benefits until age 70, which is the maximum age to earn delayed retirement credits. Understanding the distinction between FRA, the earliest claiming age, and the maximum claiming age is vital for making an informed retirement decision.
Your Full Retirement Age by Birth Year
The most important factor determining your Social Security FRA is your birth year. It's a common misconception that everyone shares the same retirement age, but as the 1983 changes were phased in, a variety of ages now apply. For example, people born in 1958 have an FRA of 66 and 8 months, while those born in 1959 will reach FRA at 66 and 10 months. The following table details the FRA for more recent birth years:
| 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 |
Early vs. Delayed Retirement: What are the Benefits?
Choosing when to start claiming your Social Security benefits is a decision with lifelong consequences. You can begin as early as age 62, but doing so will permanently reduce your monthly payments. Conversely, you can delay claiming past your FRA to receive a higher monthly benefit, which continues to increase each year you wait until age 70. This increase, known as a delayed retirement credit, is a powerful tool for boosting your retirement income, especially for those with longer life expectancies.
Consider this hypothetical example for someone with an FRA of 67:
- Claiming at 62: Benefits are permanently reduced by approximately 30%.
- Claiming at 67 (FRA): You receive 100% of your primary insurance amount (PIA).
- Claiming at 70: Your monthly benefit is increased by 24% (8% per year) compared to your FRA amount.
Factors to consider when claiming benefits
- Your Financial Needs: Do you need the money immediately, or can you use other savings to delay claiming and maximize your monthly payment later? For many, delaying isn't feasible due to necessity.
- Life Expectancy: If you have a family history of longevity or are in good health, waiting to claim may lead to a higher total lifetime benefit. Conversely, if your health is poor, claiming early might be the best option.
- Spousal Benefits: Your claiming age can also affect the survivor benefits available to your spouse. Maximizing the higher-earner's benefit is often the best strategy for a couple.
- Other Income: Working while claiming benefits before your FRA can cause a temporary reduction in your Social Security check due to the Social Security earnings test. This rule disappears once you reach your FRA.
How to Maximize Your Social Security Payments
- Work at least 35 years: The Social Security benefit formula is based on your 35 highest-earning years. Years with zero earnings can significantly lower your average, so working longer can help raise your overall benefit.
- Delay claiming if possible: Postponing your benefits past your FRA, up to age 70, can lead to a 24-32% increase, depending on your FRA.
- Review your earnings record: Ensure your earnings history is accurate by checking your statement via your personal my Social Security account. Correcting any errors can positively impact your benefit calculation.
- Coordinate with a spouse: A spouse or ex-spouse may be eligible for benefits based on your record. Coordinating claiming strategies can help maximize the total benefit for a family unit.
For more detailed information on how your claiming age affects your benefits, you can use the official Social Security Administration calculator. The tool allows you to input your birth year and different claiming ages to see the effect on your monthly payment. For a detailed guide on calculating your personal retirement age and benefit amount, visit the SSA's Benefits Planner.
Conclusion
While the answer to is full retirement age 70 now? is a definitive 'no,' the confusion is understandable given the incentives to wait until 70 to maximize benefits. The FRA depends on your year of birth and is 67 for those born in 1960 or later. Understanding your specific FRA and the implications of claiming early or delaying can be the difference between a comfortable retirement and financial struggle. By carefully considering your personal situation, financial needs, and health, you can make the best decision for your future.
