Your Full Retirement Age: How Your Birthdate Determines It
Your full retirement age (FRA), also known as your normal retirement age, is the age at which you can begin to receive your full, unreduced Social Security retirement benefits. This is not the same for everyone; it depends on the year you were born. Congress passed legislation in 1983 to gradually increase the FRA from 65 to 67 due to increasing life expectancy. This change was phased in over many years and affects individuals born in 1938 and later.
To determine your specific FRA, you must look at your birth year. The following table provides a clear breakdown of the full retirement age by birthdate, according to the Social Security Administration.
Full Retirement Age Table
| Year of Birth | Full Retirement Age |
|---|---|
| 1937 and earlier | 65 |
| 1938 | 65 and 2 months |
| 1939 | 65 and 4 months |
| 1940 | 65 and 6 months |
| 1941 | 65 and 8 months |
| 1942 | 65 and 10 months |
| 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 and later | 67 |
It is important to note that if your birthday falls on the first day of the month, the SSA will calculate your FRA and benefits as if your birthday occurred in the previous month. For example, if you were born on January 1, 1960, your FRA would be based on the rules for someone born in 1959, making it 66 and 10 months.
The Impact of Claiming Early or Delaying Benefits
Your birthdate determines your FRA, but you can choose to start claiming benefits earlier or later than this age. This decision has a significant and permanent impact on your monthly benefit amount. Understanding these trade-offs is a critical part of retirement planning.
Claiming Early (Starting at age 62)
You can start receiving Social Security retirement benefits as early as age 62. However, if you begin receiving benefits before your full retirement age, your monthly benefit will be permanently reduced. The earlier you claim, the larger the reduction. For someone with an FRA of 67, claiming at age 62 would result in a permanent 30% reduction in their monthly benefit. The reduction is calculated on a monthly basis for every month you are away from your FRA.
Delaying Benefits (Up to age 70)
If you are able to, delaying your Social Security benefits past your FRA can significantly increase your monthly payment. For every month you delay, up to age 70, you earn delayed retirement credits. For those born in 1943 or later, this equates to a 12-month increase of 8% per year. The growth stops at age 70, so there is no financial incentive to delay past this point.
Comparison of Claiming Ages
| Claiming Age | Monthly Benefit Impact (vs. FRA) | Notes |
|---|---|---|
| Age 62 | Reduced by up to 30% (for FRA of 67) | Lowest possible monthly benefit. |
| Full Retirement Age | 100% of your primary insurance amount | Benchmark for full benefits. |
| Age 70 | Increased by 24% (for FRA of 67) | Highest possible monthly benefit. |
Other Considerations That Influence Retirement
While your birthdate and claiming age are major factors, several other considerations can influence your retirement decisions. Your personal health, financial situation, and lifestyle goals should all be part of your plan.
Financial Situation: Do you have enough savings and other income sources (like pensions, 401(k)s, or investment income) to live comfortably without relying on Social Security immediately? For most people, Social Security is a supplement to, not a replacement for, their retirement savings.
Health: Your health is a critical factor. If you are in excellent health and have a family history of longevity, delaying Social Security until 70 could result in a much larger total payout over your lifetime. Conversely, if you have health issues, claiming earlier may be the right decision to access benefits when you need them most.
Spousal and Survivor Benefits: Your claiming age can also impact your spouse. If you are the higher earner, delaying your benefits can increase your spouse's survivor benefit if you pass away first. Your spouse may receive a benefit based on your record if it is higher than their own.
Working in Retirement: If you plan to continue working after you start claiming benefits but are not yet at your FRA, your earnings could temporarily reduce your Social Security payments. This earnings test ends once you reach your FRA, at which point you can earn any amount with no penalty. The benefits withheld before your FRA will be paid back to you in the form of a higher monthly benefit once you reach that age.
Conclusion: Informed Decisions for Your Future
Your birthdate is the primary determinant of your full retirement age, a key piece of information for any retirement plan. However, this is just one part of a larger, more complex decision. Choosing when to claim your benefits—early, at full retirement age, or delayed—can dramatically affect your lifetime income. It is important to consider all factors, including your overall financial health, personal circumstances, and future goals. A solid plan involves a thoughtful assessment of these variables to help you achieve a secure and comfortable retirement. To learn more about your benefits and retirement options, visit the official Social Security Administration website.
By carefully considering your options and understanding the implications of your claiming age, you can make the most of your Social Security benefits and secure a more financially stable future.
