What Is The Full Retirement Age For Social Security?
The full retirement age (FRA) for collecting Social Security benefits without a reduction depends on your birth year. While many believe the age is fixed at 65, this has not been the case for decades due to changes enacted by Congress in 1983. For anyone born in 1960 or later, the full retirement age is 67. The Social Security Administration phased in this increase over many years to account for rising life expectancies.
Full Retirement Age by Birth Year
For those born in the mid-22th century, the rules varied slightly. Here is a quick breakdown to help you determine your federal FRA:
- Born 1943–1954: Your full retirement age is 66.
- Born 1955: Full retirement age is 66 and 2 months.
- Born 1956: Full retirement age is 66 and 4 months.
- Born 1957: Full retirement age is 66 and 6 months.
- Born 1958: Full retirement age is 66 and 8 months.
- Born 1959: Full retirement age is 66 and 10 months.
- Born 1960 or later: Full retirement age is 67.
California Public Employee Retirement System (CalPERS)
For many public sector employees in California, retirement benefits are handled through CalPERS, which operates independently of federal Social Security, though some benefits may be coordinated. The minimum retirement age and benefit formulas within CalPERS vary significantly depending on your specific job classification and your hire date, which determines your “classic” or PEPRA (Public Employees' Pension Reform Act) status.
CalPERS Retirement Formulas
- Minimum age: Most CalPERS members must have at least five years of credited service and be a minimum age of 50, 52, or 55 to retire. This depends on their specific retirement formula.
- Benefit factor: The percentage of final compensation you receive is based on your age at retirement and your formula. For example, a “2% at 62” formula for PEPRA members means you receive 2% of your pay for each year of service if you retire at age 62.
- Service credit: Your benefit is calculated by your years of service credit, your age factor, and your final compensation. This formula can be complex, and members are encouraged to consult CalPERS directly for personalized guidance.
California State Teachers’ Retirement System (CalSTRS)
California educators who are members of CalSTRS also follow different retirement rules. Like CalPERS, CalSTRS benefits are based on a formula that includes age, service credit, and final compensation. The specific formula, and therefore the retirement age, depends on your date of hire and specific plan.
CalSTRS Eligibility Highlights
- Minimum age: CalSTRS members are generally eligible to retire at age 55 with at least five years of service credit. Some plans, like the CalSTRS 2% at 60 formula, allow retirement as early as 50 with 30 years of service.
- Reduced benefits: You can elect to receive reduced benefits before your normal retirement age, similar to Social Security. For example, the Reduced Benefit Election program allows eligible members aged 55 to 59 to receive half of their monthly benefit for a set period.
The Critical Difference: Federal vs. State Benefits
For many retirees in California, planning involves navigating both federal and state systems. For example, a state government worker might have a CalPERS pension but also be eligible for federal Social Security benefits. Understanding how these interact is crucial for financial planning.
Comparison of Retirement Options in California
| Feature | Federal Social Security | CalPERS (Example: PEPRA 2% @ 62) | CalSTRS (Example: 2% @ 60) |
|---|---|---|---|
| Full Retirement Age | 67 (for those born 1960 or later) | 62 | 60 |
| Early Retirement Age | As early as 62 (with reduced benefits) | As early as 52 (depending on formula) | As early as 55 (with reduced benefits) |
| Delayed Benefits | Increased benefits up to age 70 | Dependent on benefit formula and age | Increased benefits for delaying past normal retirement age |
| Who It Covers | Most U.S. workers | California public employees | California public school teachers |
| Calculation Method | Based on your highest 35 years of indexed earnings | Based on age, years of service, and final compensation | Based on age, years of service, and final compensation |
Early Retirement Considerations
Retiring before your full retirement age comes with consequences. For Social Security, filing early at age 62 can result in a permanent reduction of up to 30% of your full benefit amount. This is a significant factor to weigh, as it means less monthly income for the rest of your life. The reduction is smaller for each month you delay between age 62 and your full retirement age.
Similarly, early retirement from CalPERS or CalSTRS also results in a reduced pension benefit. The formula for the reduction depends on your age and years of service. It is essential to use the retirement calculators provided by CalPERS and CalSTRS to understand the exact impact of retiring early on your specific situation.
Delayed Retirement Benefits
Conversely, delaying retirement can significantly increase your Social Security and some state pension benefits. For each year you delay claiming Social Security benefits past your full retirement age, up to age 70, you earn delayed retirement credits. These credits increase your monthly benefit amount by approximately 8% per year.
The Power of Delayed Credits
- Example for someone with FRA of 67: If your full benefit is $2,000 per month, delaying until age 70 could increase your monthly check to around $2,480. This is a permanent increase that can offer greater financial security in later years.
- CalPERS/CalSTRS: Many state pension plans also offer increased age factors for delaying retirement. Consulting the specific plan details is necessary to see how much your benefit would increase. However, the maximum age for receiving this credit is often capped earlier than Social Security's age 70.
Planning for Your California Retirement
The key takeaway for anyone in California is that there is no single retirement age. Your personal retirement age will be a decision based on your financial needs, health, and access to various benefits. A thorough retirement plan should consider all potential income streams, including Social Security, state pensions (if applicable), and personal savings like 401(k)s and IRAs.
For more information on Social Security benefits, visit the official Social Security Administration website.
Final Thoughts on California Retirement Ages
Navigating the retirement landscape in California requires careful planning and an understanding of the different systems at play. For most people, the federal full retirement age is 67, but public employees will have additional considerations based on their specific pension plan. By researching your options and understanding the consequences of early or delayed retirement, you can make an informed decision that will provide financial stability for your future.
