The full retirement age for Social Security benefits depends on the year you were born. After the near-collapse of the Social Security program in the early 1980s, the standard retirement age, which had been set at 65 since the program’s inception, began to rise gradually. The goal was to eventually raise it to 67 years old, a change that is still ongoing.
The increase was phased in over time to prevent workers close to retirement from feeling blindsided. As of now, individuals born in 1960 or later have a full retirement age of 67, while those born before that year will retire at ages between 66 and 67.
To help future retirees understand when they can claim full benefits, here’s a table that shows exactly when full benefits will be available based on your birth year.
Why Knowing Your Full Retirement Age Matters
Even though there’s a specific “full retirement age,” many workers opt to retire and claim benefits earlier. However, knowing your exact full retirement age is crucial, as it serves as a reference point for calculating benefits when retiring early or delaying your claim.
For instance, if you were born in 1960 or later, claiming Social Security at age 62 will result in a 30% reduction in your benefits. This happens because, for the first 36 months of early retirement, the reduction is 0.55% per month (totaling 5/9 of 1% of your primary insurance amount, or PIA). After 36 months, the reduction decreases to 0.42% per month (5/12 of 1%). By claiming at 62, you’re 60 months ahead of your full retirement age, leading to the maximum 30% reduction in benefits.
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Despite this significant reduction, claiming Social Security at 62 remains one of the most popular choices, especially for workers who are ready to leave the workforce. Age 65 is another common choice, as it is the age when workers become eligible for Medicare, which helps offset healthcare costs—one of the biggest expenses for retirees.
While the reduction for claiming at 65 is less severe (you would receive about 87% of your full benefit), it remains a more attractive option for workers who need health insurance or want to retire earlier.
On the other hand, workers can delay claiming benefits past their full retirement age to increase their monthly payments. If you wait until age 70, you can claim 124% of your full benefit amount. However, this option is typically reserved for those who can afford to wait or continue working without needing the extra income immediately.
Understanding your full retirement age and how claiming at different ages affects your benefits is key to making the best decision for your financial future.
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