Full Retirement Age

Full Retirement Age (FRA) is the age at which you qualify for 100% of your Social Security retirement benefit, based on your earnings history. The Social Security Administration sets this age based on the year you were born. Claiming benefits before this age reduces your monthly payment, while waiting past it can increase your payment.

For anyone born in 1960 or later, the Full Retirement Age is 67. People born between 1955 and 1959 have an FRA that falls somewhere between 66 and 67, depending on their exact birth year. For example, someone born in 1958 reaches Full Retirement Age at 66 years and 8 months.

Here is why the timing matters:

• Claiming early: You can start Social Security benefits as early as age 62, but your monthly payment will be reduced by up to 30% compared to your full benefit amount.
• Claiming at FRA: You receive exactly the benefit amount your earnings record supports, with no reductions applied.
• Claiming late: For every year you delay past your FRA, up to age 70, your benefit grows by 8% per year. This is known as a delayed retirement credit.

A practical example helps illustrate this. Suppose your full monthly Social Security benefit at age 67 would be $2,000. If you claim at age 62, that benefit could drop to around $1,400 per month. If you wait until age 70, it could grow to roughly $2,480 per month. The difference adds up significantly over a long retirement.

Full Retirement Age is also important for people who continue working while collecting Social Security before their FRA. Earning above certain income limits can temporarily reduce your benefit during those years. Once you reach FRA, that income limit no longer applies.

Understanding your FRA is a key step in deciding when to claim Social Security. Your personal health, other income sources, and retirement goals all play a role in timing that decision.

RetireGrader is not a financial advisor or fiduciary. This definition is for educational purposes only.