Understanding the Full Retirement Age
The full retirement age (FRA), sometimes called the normal retirement age, is the age at which you can begin receiving 100% of your Social Security benefits. This age is not a one-size-fits-all number. In 1983, Congress passed legislation to gradually increase the FRA from 65 to 67, acknowledging increased life expectancies. The transition was phased in over several decades, meaning your specific FRA is tied directly to your birth year. Understanding your FRA is a critical step in retirement planning, as it impacts the total amount of benefits you can receive throughout your life. Claiming your benefits before your FRA will result in a permanently reduced monthly payment, while waiting until after your FRA can increase your benefits through delayed retirement credits.
The Official Full Retirement Age Chart
To find your specific full retirement age, you must first know your year of birth. The following chart, based on information from the Social Security Administration (SSA), provides a clear guide for determining your FRA.
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 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 |
This chart demonstrates how the age gradually increases by two months per birth year, beginning with 1955, until it reaches 67 for everyone born in 1960 or later. For those with a birthday on January 1st, the Social Security Administration uses the previous year for calculation purposes.
How Your FRA Affects Your Benefits
Your FRA is a crucial factor in calculating your monthly Social Security benefit. The three main claiming strategies—early, full, and delayed retirement—are all measured against your FRA. The decisions you make can have a significant and lasting impact on your financial security in retirement.
Early Retirement
You can start claiming Social Security benefits as early as age 62, but doing so comes at a cost. Your monthly benefit will be permanently reduced. The percentage of reduction depends on how many months you are away from your FRA. For those with an FRA of 67, claiming at age 62 results in a 30% reduction of your full benefit. While this provides income earlier, it can significantly decrease the total lifetime benefits you receive, especially if you have a long life expectancy.
Delayed Retirement
Conversely, if you wait to claim your Social Security benefits until after your FRA, you can increase your monthly payment through delayed retirement credits. These credits increase your benefit amount by a certain percentage for each month you delay, up to age 70. The percentage increase is approximately 8% per year. For an individual with an FRA of 67, delaying until age 70 could result in an increase of 24% over their full benefit amount. After age 70, no further delayed credits are accrued.
The Impact of the 1983 Social Security Amendments
The 1983 Social Security amendments, signed into law by President Reagan, fundamentally changed the way retirement benefits were calculated. The legislation addressed the long-term solvency of the Social Security program by gradually increasing the full retirement age. Before this change, the FRA was 65 for everyone. The shift was phased in over many years to minimize the shock to retirees and allow for adequate planning. This legislative change is why there is a sliding scale on the full retirement age chart rather than a single, static number.
Planning for Retirement with the FRA Chart
To effectively plan for your retirement, consider the following steps in conjunction with the FRA chart:
- Calculate your FRA: Use the chart to identify your specific full retirement age based on your year of birth.
- Estimate your benefits: Access the Social Security Administration's website to create a 'my Social Security' account. This provides a personalized estimate of your potential benefits at different ages.
- Evaluate your claiming strategy: Consider your life expectancy, retirement savings, and other income sources when deciding whether to claim early, at full retirement age, or delay. An early claim provides immediate cash but a smaller monthly check, while a delayed claim offers a larger monthly check later on.
- Consult a financial advisor: A financial planner can help you integrate your Social Security benefits with your overall retirement strategy, including your 401(k), pensions, and other savings. For more information on retirement planning, review the resources at the Social Security Administration's website.
Conclusion
Understanding what is the full retirement age chart is a foundational step in preparing for a financially secure retirement. The chart, based on your birth year, dictates the age at which you are entitled to 100% of your Social Security benefits. While you can claim benefits earlier or later, your decisions will have a significant impact on your monthly payout. By using the chart and other planning resources, you can make informed choices to maximize your benefits and ensure a more comfortable retirement.
