Social Security Full Retirement Age: Your retirement income will be impacted for a long time by your decision to start receiving Social Security benefits at age 62, 67, or 70. While delaying greatly increases your benefits, starting early results in lower monthly payments. One of the most important retirement planning decisions is when to begin receiving your Social Security benefits.
Choosing when to start receiving Social Security benefits is a personal choice that needs to be carefully thought out in light of your long-term objectives, health, and financial needs. Delaying benefits can eventually result in much larger monthly payments, even though starting early offers immediate income.
Social Security Full Retirement Age
You become eligible to receive full Social Security benefits at Social Security Full Retirement Age (also known as “normal retirement age”), which depends on your birthday.
- If you were born in 1957 or earlier, you’ve already reached full retirement age. Under current law,
- If you were born in 1958 or later, your full retirement age can be wherever between 66 and 8 months and 67 for those born in 1960 and after.
| Birth Dates | Social Security Full Retirement Age |
| 1957 or earlier | You’ve already hit full retirement age |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
Know Social Security Benefits Payment
- For many Americans, Social Security is their main source of retirement income.
- Your Primary Insurance Amount (PIA), which is based on your average indexed monthly earnings (AIME) over the 35 years with the highest earnings, determines how much you will receive each month.
Social Security Full Retirement Age (FRA)
The age at which you are qualified to receive 100% of your PIA is known as your Social Security Full Retirement Age (FRA). For those who were born after 1960, the FRA is 67 year. Choosing to make a claim either before or after your FRA modifies your payout:
- Early Retirement (Age 62),your monthly payments are lowered to 70% of your PIA if you choose to retire early (at age 62).
- Delayed Retirement (Age 70)raises your payments to 124% of your PIA.
Average Social Security Benefits by Age
| Social Security Full Retirement Age | Percentage of Full Benefit | Average Monthly Benefit | Key Considerations |
| Age 62 | 70% | $1,311 | People with shorter life expectancies or those in need of immediate income frequently select this option. |
| Age 67 | 100% | $1,894 | You will receive your entire benefit amount if you wait until your FRA. For many retirees who do not require early access to benefits, this is the default option. |
| Age 70 | 124% | $2,068 | Benefits deferral maximizes your monthly payments and provides substantial long-term financial benefits, particularly for those with longer life expectancies. |
Factors for Determining Your Social Security Full Retirement Age
1. Expectancy of Life: Delaying benefits can increase lifetime earnings if you anticipate living into your 80s or 90s. For instance, a person who begins receiving benefits at age 70 and lives to 90 will earn a lot more money overall than someone who begins at age 62.
2. Needs for Money: It may be best to start receiving benefits at age 62 if you have urgent financial needs. However, your monthly payments will be permanently reduced as a result of this decision.
3. Workplace Situation: Benefits may be impacted if you continue to work after age 62:
- Prior to FRA: Your benefits may be temporarily reduced if you make more than the annual cap ($21,240 in 2024).
- Following FRA: Your benefits won’t be diminished, and there is no earnings cap.
4. Additional Sources of Retirement Income: Consider your other sources of income, including investments, savings, and pensions. The flexibility to postpone Social Security and optimize benefits can be obtained through a diversified income strategy.
What if I take Social Security Benefits EARLY?
If you choose to take your own (not your spouse’s) Social Security benefit early, be aware that the payments will be permanently reduced by five-ninths of 1% for every month before your full retirement age. If you start more than 36 months before your full retirement age, the worker benefit decreases further by five-twelfths of 1% per month for the remainder of retirement.
For example, if your full retirement age is 67 and you elect to begin benefits at age 62, the SSA will calculate your payments based on 60 months—a 20% reduction for the first 36 months (five-ninths of 1% times 36) and another 10% (five-twelfths of 1% times 24) for the remaining 24 months, cutting your monthly Social Security benefits a total of 30%.
What if I delay taking my Social Security benefits to age 70?
If you retire someday between your full retirement age and age 70, you typically earn a “delayed retirement” credit (DRC) for your own benefits (but not spousal benefits). The higher baseline would last for the remainder of your retirement and serve as the basis for future increases linked to inflation. In no situation should you defer benefits past age 70.
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For example, say you were born in 1960, and your full retirement age is 67. If you start your benefits at age 69, you will receive a credit of 8% per year multiplied by two (the number of years you waited). This means your benefit amount would be 16% higher than the amount you would have received at age 67. (This does not include any potential additional cost of living adjustments for inflation from age 67 to 69.)
Frequently Asked Questions (FAQs): Social Security Full Retirement Age
What is Social Security Full Retirement Age(FRA)?
The age at which you are qualified to receive 100% of your PIA is known as your Social Security Full Retirement Age(FRA).
What is Delayed Retirement?
Delayed retirement refers to postponing the receipt of Social Security retirement benefits until after reaching your full retirement age. Delaying your retirement each month allows you to earn credits, which boosts your benefit payments.
What is the benefit of Delayed Retirement?
Delayed Retirement (Age 70)raises your payments to 124% of your PIA.
What are the disadvantages of Early Retirement?
Your monthly payments are lowered to 70% of your PIA if you choose to retire early (at age 62).
What is the Average Monthly Benefit if you take the Retirement at the age of 62, 67 & 70?
Age 62- $1,311
Age 67- $1,894
Age 70- $2,068
What is Social Security benefit?
Social Security benefits are financial payments provided to individuals who have contributed to the Social Security program through their work. These advantages aim to offer financial support to individuals who are retired, living with disabilities, or have dependents.
