Your full retirement age depends on your birth year
For decades, 65 was the standard age to claim full Social Security benefits. However, Congress passed a law in 1983 to gradually increase the Full Retirement Age (FRA) in response to longer life expectancies. This change began with people born in 1938 and eventually set the FRA at 67 for those born in 1960 or later.
To receive full retirement at age 65, you must have been born in 1937 or earlier. If your birth year is later, your FRA will be higher. The full retirement age schedule ranges from 65 years for those born in 1937 or earlier to 67 for those born in 1960 or later. Intermediate birth years have an FRA between 65 and 67. For a complete list of full retirement ages based on birth year, please refer to the {Link: Social Security Administration website https://www.ssa.gov/benefits/retirement/planner/ageincrease.html}.
Implications of claiming Social Security benefits at different ages
Your claiming age impacts your monthly benefit amount. The earliest you can claim benefits is age 62, but this results in a permanent reduction. Delaying benefits past your FRA, up to age 70, increases your monthly payment. This decision involves weighing the need for earlier access to funds against the desire for higher monthly income later on. Health status and financial needs can influence the decision to claim early, while maximizing income for a longer life expectancy might favor delaying benefits.
Early vs. delayed claiming decisions
| Feature | Early Claiming (at age 62) | Delayed Claiming (up to age 70) |
|---|---|---|
| Monthly Benefit | Significantly reduced compared to your FRA benefit. The percentage reduction is permanent. | Increased monthly benefit, earning delayed retirement credits for each month you wait past your FRA. |
| Total Lifetime Benefits | You receive more payments over a longer period, which can be advantageous if you have a shorter life expectancy. | Fewer total payments, but each check is larger. Beneficial if you live past the average life expectancy. |
| Flexibility | Provides earlier access to funds if needed for a shorter work career or financial hardship. | Requires working longer or having other sources of income to bridge the gap until you start claiming benefits. |
| Primary Factor | Health status and financial needs often drive the decision to claim early. | Maximizing monthly income and a long life expectancy are often the primary motivators. |
It is important to remember that Medicare eligibility begins at age 65, regardless of your Social Security claiming age. If you delay Social Security benefits, you still need to enroll in Medicare at 65 to avoid potential penalties. Resources like the Social Security Administration's website offer tools to help you understand your specific situation.
Conclusion: The end of full retirement at 65 for most
The full retirement age of 65 applies only to those born in 1937 or earlier. Due to legislative changes in the 1980s, the FRA has gradually increased, reaching 67 for those born in 1960 and later. This change emphasizes the importance of personalized retirement planning. Individuals must consider their life expectancy, financial situation, and health when deciding when to claim Social Security benefits, understanding the trade-offs between claiming early for reduced benefits or delaying for increased monthly income. Knowing your personal FRA is a crucial first step in making an informed decision about your financial future. For detailed information, visit the Social Security Administration's retirement planner.
