Many folks grew up thinking that 65 was the magic number for full Social Security retirement benefits. But for most Americans born after 1937, the “Full Retirement Age” (FRA) has gradually moved past 65. This change was put in motion decades ago to keep the Social Security system strong as people started living longer. So, if you’re looking to retire soon, it’s really important to know what your actual full retirement age is.
Full Retirement Age: What You Need to Know
Your Full Retirement Age (FRA) is the age at which you can start receiving 100% of your Social Security retirement benefits. It’s not a single age for everyone anymore; it depends on your birth year. For anyone born in 1960 or later, your Full Retirement Age is 67. If you were born between 1943 and 1959, your FRA is somewhere between 65 and 67.
- Not 65 for Everyone: Only people born in 1937 or earlier had a Full Retirement Age of 65.
- Based on Birth Year: Your specific FRA is determined by the year you were born.
- It’s Gradual: The increase from 65 to 67 was phased in over many years, not a sudden jump.
What Happens if You Retire at 65?
You can absolutely still retire and start taking Social Security benefits at age 65, even if it’s not your Full Retirement Age. However, if you start receiving benefits before your FRA, your monthly payment will be permanently reduced. For example, if your FRA is 67, and you start benefits at 65, your payment would be about 13.3% less than what you’d get if you waited until 67. The earliest you can start claiming is usually age 62, but doing so results in an even larger reduction.
- Benefits Are Reduced: Claiming before your FRA means a smaller monthly check for life.
- Early Claiming Option: You can claim as early as age 62, but with a significant reduction.
- Permanent Reduction: This reduction typically doesn’t change once you start receiving benefits.
Social Security Eligibility and Work Credits
To be eligible for Social Security retirement benefits, you need to earn enough “work credits.” You can earn up to 4 work credits each year you work and pay Social Security taxes. Most people need 40 work credits in total, which means working for about 10 years (because you can earn up to 4 credits per year). These credits don’t determine the amount of your benefit, but they do determine if you qualify for benefits at all.
- 40 Credits Needed: This is the standard requirement for most people to qualify for retirement benefits.
- Earned by Working: Credits are earned through your job earnings that are subject to Social Security taxes.
- Not About Amount: Work credits determine eligibility, not the size of your monthly payment.
The Impact of Full Retirement Age on Social Security Benefits
Your Full Retirement Age directly impacts how much Social Security you receive each month.
- Claiming at FRA: You get 100% of your primary insurance amount (PIA), which is your basic benefit amount.
- Claiming Before FRA: Your benefit is permanently reduced. The earlier you claim, the larger the reduction.
- Claiming After FRA: For every month you delay taking benefits past your FRA (up to age 70), you earn delayed retirement credits. These credits boost your monthly payment by a certain percentage each year, making your benefit larger for life.
Understanding your FRA helps you decide the best time to claim benefits to maximize your income in retirement.
Social Security Retirement at 65: What’s Changed?
The biggest change is that for anyone born in 1943 or later, the Full Retirement Age is no longer 65. It gradually increased for people born in certain years until it reached 67 for those born in 1960 and after. This means if you’re turning 65 in 2025 (meaning you were born in 1960), your Full Retirement Age for full benefits is actually 67, not 65.
- FRA is 67 for 1960+ Births: If you were born in 1960 or later, your full benefit age is 67.
- Gradual Implementation: The shift was planned over many years, not a sudden change this year.
- Still an Option: You can still start at 65, but be aware of the benefit reduction.
How to Plan for Retirement
Planning for retirement involves more than just Social Security. Here are some key steps:
- Check Your Social Security Statement: This statement, available online through your “my Social Security” account, shows your earnings history and estimated benefits at different claiming ages.
- Estimate Your Expenses: Figure out how much money you’ll need each month in retirement.
- Save Money: Use retirement accounts like 401(k)s, IRAs, and other savings to build your nest egg.
- Consider Other Income Sources: Think about pensions, part-time work, or other investments.
- Talk to a Financial Advisor: A professional can help you create a personalized retirement plan.
What’s Next for Social Security Benefits?
Social Security faces ongoing financial challenges as the population ages and fewer workers support more retirees. There are always discussions in Congress about potential changes to keep the system solvent. These discussions might include further adjustments to the Full Retirement Age, changes to how benefits are calculated, or adjustments to Social Security taxes. Staying informed about these debates is wise, though any major changes typically involve long discussions and a gradual implementation.
- Future Solvency Concerns: Social Security faces long-term financial challenges.
- Ongoing Debates: Lawmakers often discuss various options for strengthening the system.
- Potential Future Adjustments: Further changes to FRA or benefit calculations could happen in the future, but usually with plenty of notice.
FAQs
What is the new full retirement age for Social Security benefits?
The “new” full retirement age depends on your birth year. For anyone born in 1960 or later, the Full Retirement Age is 67. For those born between 1943 and 1959, it’s somewhere between 65 and 67.
Can I still retire at 65 and receive Social Security benefits?
Yes, you can still start receiving Social Security benefits at age 65. However, if your Full Retirement Age is higher than 65 (which it is for most people born after 1937), your monthly benefit will be permanently reduced because you are claiming early.
How can I find out how much Social Security I will receive?
The best way to find out your estimated Social Security benefits is to create an account on the Social Security Administration’s website at ssa.gov/myaccount. There, you can view your personalized Social Security Statement, which shows your earnings record and estimated benefits at different claiming ages (62, your Full Retirement Age, and 70).