What exactly is the retirement age for receiving full Social Security benefits?

For millions of Americans, Social Security plays a vital role in retirement planning. However, one question that often leads to confusion is about the exact age at which individuals can begin collecting full Social Security benefits. The answer isn’t the same for everyone. It depends on the year a person was born and how that aligns with federal retirement policy. Understanding the concept of Full Retirement Age, or FRA, is essential when deciding when to claim Social Security benefits.

Full Retirement Age refers to the age at which an individual becomes eligible to receive 100 percent of their Social Security retirement benefits. This is different from the earliest age you can start receiving benefits, which is 62-but doing so before FRA results in a permanent reduction in monthly payments.

Conversely, delaying benefits beyond your FRA can actually increase the amount you receive monthly, thanks to a system of delayed retirement credits.

When Social Security was introduced in the 1930s, the retirement age was set at 65. However, due to longer life expectancies and growing financial strain on the system, Congress passed legislation in 1983 to gradually raise the FRA. As a result, the full retirement age is now tied directly to your birth year.

If you were born in 1937 or earlier, your FRA remains 65. For those born between 1938 and 1942, the FRA gradually increases from 65 to 66. Anyone born between 1943 and 1954 has a full retirement age of 66. For people born between 1955 and 1959, the FRA increases incrementally.

Those born in 1955 reach FRA at 66 and 2 months; in 1956, it’s 66 and 4 months; in 1957, it’s 66 and 6 months; in 1958, it’s 66 and 8 months; and in 1959, it’s 66 and 10 months. For everyone born in 1960 or later, full retirement age is 67.

What claiming benefits early or late means for your income

While it’s possible to begin receiving Social Security as early as age 62, doing so comes with consequences. If your FRA is 67 and you claim at 62, your benefits will be permanently reduced by up to 30 percent.

This reduction can significantly affect your lifetime income, especially if you live a long life. On the other hand, waiting beyond your full retirement age can increase your monthly benefits. For every year you delay past FRA, up to age 70, your benefit amount increases by about 8 percent per year.