Alternate name: Normal retirement age
For example, if you start collecting benefits at age 62, the earliest age at which you can collect, you could see up to 30% reduction in full benefits. If you delay benefits until after your full retirement age, your benefits are increased thanks to delayed retirement credits. These credits can increase your benefits by up to 8%.
How Does Full Retirement Age Work?
Full retirement age is not the same age for everyone. Understanding when you will reach full retirement age depends on the day and year you were born. Although full retirement age once was 65 for everyone, Congress passed a law in 1983 that gradually increased it to age 67, because people were living longer. For example, someone born on January 1, 1956, would use 1955 as the year to figure their full retirement age, as they would be considered to have attained an age (in this case, 66) on December 31 of the previous year (1955). According to the Social Security Administration, full retirement age for those with 1955 as an official birth year would be 66 years and two months; therefore, that is their retirement age, even if they were actually born in 1956. If you are applying for a widow or widower’s benefit, the earliest age you can receive these benefits is age 60, when you would receive a reduced benefit. For example, someone born at any time from 1945 through 1956 would reach their full retirement age for a survivor’s benefit at age 66. If you take Social Security benefits before FRA, and you earn income in excess of the annual earnings limit, your Social Security benefit will be reduced. Once you reach FRA, you can earn as much as you like, and your Social Security benefit will not be reduced. For couples, in many cases having the spouse who earned the most wait until full retirement age or later to begin benefits can result in a serious boost to survivor benefits. If you’re married, be sure to coordinate your claiming decision to put the two of you in the most secure position.
