Understanding the Social Security Full Retirement Age (FRA)
The question, "What is the new retirement age on Social Security?" is crucial for anyone planning their golden years. For decades, the full retirement age (FRA) was 65, but a 1983 law gradually increased it to 67 to reflect rising life expectancies. For everyone born in 1960 or later, the FRA is 67. However, this is just one of several claiming ages that determines your monthly benefit amount.
The earliest you can begin collecting retirement benefits is age 62, but doing so comes with a permanent reduction of up to 30%. Conversely, you can delay collecting benefits past your FRA, up to age 70, earning delayed retirement credits that increase your monthly payment by 8% per year. After age 70, no further credits are awarded.
How Your Birth Year Affects Your Full Retirement Age
Your exact FRA is determined by your birth year, due to the gradual increase enacted by Congress. For a detailed breakdown by birth year, see the official {Link: Social Security website https://www.ssa.gov/pubs/EN-05-10035.pdf}.
The Choice: Early, Full, or Delayed Retirement
Choosing when to claim Social Security benefits involves considering the trade-offs between starting earlier with reduced payments or waiting for larger monthly amounts. Claiming at age 62 results in a permanent reduction, while delaying past your FRA up to age 70 earns delayed retirement credits.
Key Considerations for Your Retirement Decision
When deciding when to claim, consider factors like your life expectancy, financial needs, employment status, and potential spousal benefits. Working while receiving benefits before your FRA can impact payments if earnings exceed a limit, but this limit doesn't apply after reaching your FRA.
Comparison of Retirement Scenarios
The table below illustrates the impact of different claiming ages for someone with a Full Retirement Age of 67.
| Feature | Early Retirement (Age 62) | Full Retirement (Age 67) | Delayed Retirement (Age 70) |
|---|---|---|---|
| Benefit Level | Up to 30% reduction from FRA benefit. | 100% of the benefit earned. | 124% of the benefit earned. |
| Break-Even Age | Varies by individual. | Baseline. | Higher benefits take time to recover earlier forgone payments. |
| Total Lifetime Payout | Can be lower with a longer lifespan. | Depends on life expectancy. | Potentially higher with longer lifespan. |
| Income Security | Immediate, but smaller monthly checks. | Stable monthly income. | Highest potential monthly income. |
| Flexibility | Provides quick access to funds. | Standard benefit. | Maximizes monthly payment. |
What the Future Holds for Social Security
Discussions about the long-term solvency of the Social Security program are ongoing, with potential future changes including possible benefit reductions or adjustments to the retirement age. To understand your potential benefits and options, consider creating a secure online account.
Conclusion
The full retirement age on Social Security is 67 for individuals born in 1960 or later, but the exact age can vary based on birth year due to past legislative changes. Individuals have the flexibility to claim benefits as early as age 62 with a permanent reduction, or delay until age 70 to increase their monthly payment. Making this decision requires evaluating personal circumstances such as health, financial needs, and life expectancy. Stay informed about the program and utilize resources provided by the Social Security Administration for personalized planning.
Get your personalized retirement benefit estimate today!
For a personalized estimate of your Social Security benefits based on your earnings record, create a secure online account on the {Link: Social Security Administration's website www.ssa.gov/myaccount}. Visit the official {Link: SSA website www.ssa.gov} for more information.
- How do Social Security delayed retirement credits work?: Delaying benefits past your full retirement age up to age 70 earns credits that increase your monthly payment by 8% per year.
- When does my benefit stop increasing?: Benefit increases from delayed retirement credits stop at age 70.
- Is it possible to receive a reduced benefit?: Yes, claiming benefits as early as age 62 results in a permanent reduction.
- What happens if I work while receiving Social Security benefits?: Working before your full retirement age can lead to temporary benefit reduction if earnings exceed a limit; no limit applies after reaching FRA.
- What factors should influence my claiming decision?: Consider health, life expectancy, financial needs, and marital status.
- What is the retirement age for someone born in 1959?: The full retirement age for someone born in 1959 is 66 and 10 months.
My Social Security Account Benefits
Creating an online account with the Social Security Administration offers several advantages for planning your retirement:
- Access personalized benefit estimates.
- Check your earnings record for accuracy.
- Get proof of non-receipt of benefits.
- Request a replacement Social Security card.
- Opt for online notices for quicker updates.
