Understanding the Full Retirement Age (FRA)
The Full Retirement Age (FRA) is the age at which an individual qualifies to receive their full, unreduced Social Security retirement benefits. This age is tied to your birth year and serves as the benchmark for calculating reductions if you claim early or increases if you delay claiming. The FRA was historically 65, but legislative changes in 1983 initiated a gradual increase to reflect longer life expectancies. This phased increase applies to individuals born in 1938 or later, with the FRA reaching 67 for everyone born in 1960 or after.
Your Full Retirement Age by Birth Year
Determining your specific FRA is a key step in retirement planning. The following table illustrates the FRA based on your birth year:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943-1954 | 66 years |
| 1955 | 66 years and 2 months |
| 1956 | 66 years and 4 months |
| 1957 | 66 years and 6 months |
| 1958 | 66 years and 8 months |
| 1959 | 66 years and 10 months |
| 1960 or later | 67 years |
Claiming Benefits Early or Late
You have flexibility in when you choose to start receiving Social Security benefits, but your claiming age relative to your FRA has a lasting impact on your monthly payment.
Early Retirement (Age 62-FRA)
You can elect to begin receiving Social Security benefits as early as age 62. However, claiming before your FRA results in a permanent reduction to your monthly benefit amount. The percentage of reduction depends on how many months you are from your FRA when you start receiving benefits. For someone with an FRA of 67, claiming at 62 means a 30% reduction in their monthly benefit. This lower amount will continue for as long as you receive benefits.
Delayed Retirement (FRA-Age 70)
Alternatively, you can delay claiming your Social Security benefits past your FRA, up to age 70. Delaying accrues Delayed Retirement Credits, which increase your monthly benefit for each month you wait past your FRA. These credits stop accumulating once you reach age 70, making 70 the age at which you can receive your maximum possible monthly benefit.
Key Considerations for Your Claiming Decision
The optimal time to claim Social Security is highly personal and depends on a combination of factors.
Health and Life Expectancy
Your health status and expected lifespan are significant considerations. If you have health issues that may impact your longevity, claiming earlier might allow you to receive benefits for more years, despite the reduced monthly amount. If you anticipate a long, healthy retirement, delaying could provide a higher cumulative benefit over time.
Financial Needs and Resources
Your current financial situation and other retirement funds play a crucial role. If Social Security is necessary to cover immediate living expenses, early claiming may be unavoidable. However, if you have substantial savings from sources like a 401(k), IRA, or pensions, you may have the financial flexibility to delay Social Security and secure a higher monthly payment. Continuing to work past your FRA can also allow you to delay claiming and boost your future benefits while earning income.
Impact on Family
Your claiming age can affect benefits for your spouse and other dependents. A higher earner who delays claiming can secure a larger potential survivor benefit for their spouse. Understanding how your decision affects potential spousal or survivor benefits is important for overall family financial planning.
Accessing Your Personalized Benefit Information
The Social Security Administration provides a valuable online resource to help you make an informed decision. By creating or accessing your personal my Social Security account on the SSA website, you can view your earnings history and get personalized estimates of your future benefits at different claiming ages. This tool is essential for understanding how early, full, or delayed claiming specifically impacts you.
Conclusion
While the answer to "what is the new retirement age for Social Security" is 67 for those born in 1960 or later, your optimal claiming age may differ. Carefully weighing the pros and cons of early, full, and delayed retirement based on your personal health, financial circumstances, and family needs is vital. Utilizing the resources provided by the Social Security Administration, particularly the online my Social Security account, is the best way to get personalized information and make a decision that helps you achieve a secure retirement. For the most accurate and up-to-date information, always refer to the official Social Security Administration website.
