Your Full Retirement Age: The Basics
Your full retirement age (FRA) is the age at which you become eligible to receive 100% of the Social Security retirement benefits you've earned. A law passed by Congress in 1983 gradually increased the FRA from 65 to 67, affecting individuals born in 1938 and later. For those born in 1960 or later, including 1988, the FRA is 67. This age is a crucial factor in retirement planning as the age you begin claiming benefits directly impacts your monthly payment amount. While your FRA is fixed, you have control over when you start receiving payments.
Early vs. Delayed Retirement: What are your options?
Even though your full retirement age is 67, you have the flexibility to start receiving Social Security benefits as early as age 62 or delay them until age 70. Each option results in a different benefit amount.
Early Retirement at 62
Claiming Social Security at age 62 permanently reduces your monthly benefits. For someone with an FRA of 67, claiming at 62 means a 30% reduction from their full benefit. While you receive payments over a longer period, they are smaller. Factors like health, financial needs, and life expectancy should be considered.
Delayed Retirement up to 70
Delaying benefits past your FRA increases your monthly payment through delayed retirement credits. For those born in 1943 or later, the annual increase is 8%, continuing until age 70. Delaying can lead to higher total lifetime benefits if you live past the average life expectancy. There is no additional increase for waiting past age 70.
Comparison of Claiming Ages for an Individual Born in 1988
This table shows how claiming age impacts monthly Social Security benefits for someone with an FRA of 67, using a $1,000 primary insurance amount (PIA) as an example.
| Claiming Age | Monthly Benefit (vs. PIA) | Monthly Benefit ($1,000 PIA) | Lifetime Payments Factor (Approx.) |
|---|---|---|---|
| 62 (Earliest) | ~70% | $700 | Higher total initial years, lower payments for life |
| 67 (FRA) | 100% | $1,000 | Baseline for comparison, full benefits received |
| 70 (Latest) | 124% | $1,240 | Highest possible monthly payment, accrues up to age 70 |
Creating Your Retirement Strategy
Understanding your full retirement age is essential for your overall financial plan. Here are steps to help you plan:
- Use Your
my Social SecurityAccount: View your earnings record and get estimated benefit amounts for different retirement ages via the SSA's online portal. - Evaluate Your Financial Health: Consider other retirement savings, expenses, income, and life expectancy when deciding when to start Social Security.
- Use Available Calculators: The SSA offers Quick and detailed benefit calculators.
- Consider Spousal and Survivor Benefits: Your claiming age can affect these benefits. Delaying benefits increases your survivor's benefit, but not your spouse's benefit while you are both alive.
- Consult a Financial Advisor: For complex situations, a financial advisor can provide personalized guidance.
Conclusion
For those born in 1988, the full retirement age for 100% Social Security benefits is 67. The age you choose to claim benefits permanently affects your monthly payment amount. Claiming early at 62 results in a reduced benefit, while waiting until 70 maximizes your monthly payment through delayed retirement credits. The optimal time to claim is a personal decision based on your financial situation, health, and life expectancy. Planning effectively will help you secure your financial future and make the most of your Social Security benefits. For official information and personalized estimates, visit the Social Security Administration's website.
