Takeaways
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Understanding when you can claim full Social Security benefits is key to smart retirement planning. This article explains why the full retirement age has shifted from 65 to 67, how timing affects your monthly payments, and what to consider before making a decision.
Key Takeaways
The full Social Security Retirement Age (FRA) is 67 for those born in or later. It was previously 65.
Claiming Social Security benefits before FRA permanently reduces your monthly payments.
When planning retirement, consider your health, work plans, and other income sources in relation to your FRA to optimise your financial future.
Contents
- Key Takeaways
- What Is Full Social Security Retirement Age (FRA)?
- Why Was the Retirement Age Raised from 65 to 67?
- Retirement Age by Birth Year
- What Happens If I Claim Social Security Benefits Early?
- What Are the Benefits of Delaying Social Security Benefits?
- What Should I Consider When Planning for Retirement?
- How Can I Plan My Retirement Around Social Security Benefits?
What Is Full Social Security Retirement Age (FRA)?
Full Retirement Age (FRA) is the age when you qualify for 100% of your Social Security retirement benefits. For those born in or later, FRA is 67. Claiming benefits before this age leads to permanently reduced payments. Waiting beyond FRA can increase your monthly benefit up to age 70.
Why Was the Retirement Age Raised from 65 to 67?
In 1983, Congress passed legislation to gradually raise the FRA to reflect:
- Increased life expectancy
- Ensuring Social Security’s long-term financial stability
Retirement Age by Birth Year
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| or earlier | 65 years old |
| Gradually rises from 65 to 66 years and 10 months | |
| or later | 67 years old |
People born in turning 65 in 2025 must wait until 67 to claim full benefits. Use the Social Security retirement age calculator to estimate benefits.
What Happens If I Claim Social Security Benefits Early?
You can claim benefits as early as age , but your monthly payment will be permanently reduced. For example, if your FRA is 67 and you claim at 65, you will receive about 86.7% of your full benefit amount.
Note: Claiming early benefits permanently reduces your payments. Carefully consider your life expectancy and finances before deciding.
What Are the Benefits of Delaying Social Security Benefits?
- For each year you delay past FRA (up to age 70), your benefit increases by about 8% annually.
- Waiting until age 70 can increase your monthly payment by approximately 24% compared to claiming at 67.
What Should I Consider When Planning for Retirement?
- Health and Life Expectancy: If you expect to live into your 80s or beyond, delaying benefits may increase your total income.
- Work Plans: If you continue to work while receiving early benefits, your Social Security payments could be temporarily reduced depending on your income.
- Other Income Sources: Pensions, savings, and investments can help bridge the income gap if you delay claiming benefits.
How Can I Plan My Retirement Around Social Security Benefits?
Understanding your full retirement age and how it affects your benefits is crucial. This knowledge helps you make informed decisions to maximize your financial well-being
Contact Mazenko Law Firm to discuss your retirement planning options and ensure you optimize your Social Security benefits.
