What Is Full Retirement Age
Introduction
Full Retirement Age (FRA) is the age at which individuals become eligible to receive full Social Security retirement benefits. It is an important milestone that determines the amount of benefits individuals can receive affects their retirement planning financial security.
Understanding Full Retirement Age
The Full Retirement Age varies depending on an individual’s birth year. It is calculated by the Social Security Administration (SSA) takes into account the changing trends in life expectancy. Previously the Full Retirement Age was typically 65 but due to increased longevity changes in the Social Security law it has gradually increased for individuals born after 1937.
Full Retirement Age by Birth Year
The following table shows the Full Retirement Age based on birth year:
| Birth Year | Full Retirement Age |
|---|---|
| 1937 or earlier | 65 |
| 1938 | 65 2 months |
| 1939 | 65 4 months |
| 1940 | 65 6 months |
| 1941 | 65 8 months |
| 1942 | 65 10 months |
| 1943-1954 | 66 |
| 1955 | 66 2 months |
| 1956 | 66 4 months |
| 1957 | 66 6 months |
| 1958 | 66 8 months |
| 1959 | 66 10 months |
| 1960 or later | 67 |
Implications of Full Retirement Age
Claiming Social Security benefits before reaching Full Retirement Age can result in reduced monthly payments. On the other hand delaying claiming benefits beyond Full Retirement Age can lead to an increase in monthly payments up until the age of 70.
It is important to note that individuals can choose to claim Social Security benefits as early as age 62 but the monthly payments will be permanently reduced compared to what they would receive at Full Retirement Age. Conversely if individuals delay claiming benefits beyond Full Retirement Age the monthly payments will increase by a certain percentage resulting in a larger benefit amount.
Factors to Consider
When deciding the optimal age to claim Social Security benefits individuals need to consider various factors such as their financial needs health status life expectancy future employment plans. Consulting with a financial advisor or using online tools provided by the Social Security Administration can help individuals make informed decisions regarding their retirement income.
Conclusion
Full Retirement Age is an important milestone for individuals seeking to maximize their Social Security retirement benefits. It is essential to be aware of the Full Retirement Age based on an individual’s birth year consider the implications of claiming benefits before or after that age. With careful planning consideration of personal circumstances individuals can make the most suitable choices regarding their retirement income financial well-being.
