Full retirement age is the age that you can start receiving or drawing from your retirement accounts. But many refer to full retirement age specifically as when they can claim unreduced Social Security benefits.
In 1983, the Social Security Administration gradually increased the full retirement age for Social Security benefits from 65 to 67. Here’s your full retirement age based on your birth year.
| Birth year | Full retirement age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
If you were born on January 1, your benefits are based on the previous year.
It’s possible to retire and start collecting your Social Security payments at 62. But if you retire before your full retirement age, your benefits are permanently reduced. Here’s how much you might lose if you file for Social Security benefits early at age 62.
| Birth year | Full retirement age | Percent loss in benefit amount |
|---|---|---|
| 1943-1954 | 66 | 25% |
| 1955 | 66 and 2 months | 25.83% |
| 1956 | 66 and 4 months | 26.67% |
| 1957 | 66 and 6 months | 27.5% |
| 1958 | 66 and 8 months | 28.33% |
| 1959 | 66 and 10 months | 29.17% |
| 1960 and later | 67 | 30% |
Fortunately, you’ll forfeit less of your Social Security payment amount every month you inch closer to your full retirement age. For example, here’s a quick glimpse of your benefits reduction if you’re born in 1960 or later and retire between age 62 and your full retirement age of 67.
| Early filing age | Percentage loss in benefit amount |
|---|---|
| 62 | 30% |
| 63 | 25% |
| 64 | 20% |
| 65 | 13.9% |
| 66 | 6.7% |
| 67 | 0% |
If you claim Social Security benefits early and continue to work, your earned income can reduce your payment. This is known as the Earnings Test.
Essentially, for every two dollars that you make over a specific threshold, one dollar of your benefit will be withheld. The withholding rate is a bit kinder if you’re reaching your full retirement age that year.
To find out how your earnings can affect your monthly benefit, use the Social Security Administration’s Retirement Earnings Test Calculator.
Once you reach your full retirement age, you’re exempt from the Retirement Earnings Test.
If you delay retirement and postpone claiming Social Security, you stand to increase your benefits every month until age 70. For those born in 1960 or later, here’s how much you could boost your monthly benefit.
| Delayed benefit filing age | Percent increase in benefit amount |
|---|---|
| 67 | 0% |
| 68 | 8% |
| 69 | 16% |
| 70 | 24% |
Arguments can be made that if you retire early at age 62, you get more Social Security payments than if you delay retirement to age 70 — even with the reduced monthly benefit. While many factors go into how much Social Security will pay out in your lifetime, here’s how the math could play out.
Let’s say you’re entitled to a monthly retirement benefit of $1,000. If you were born in 1960 or later and retire at 62, your retirement benefit would be reduced to $700 — a reduction of 30%. If you continue to collect Social Security until the average life expectancy of age 78, you’d receive a total of 192 monthly payments or $134,400 (192 x $700).
On the other hand, if you delay retirement benefits until 70, your payment could increase to $1,240 — an increase of 24%. If you secure payments until age 78, you’d get a total of 96 monthly benefits or $119,040 (96 x $1,240).
While retiring early cuts your monthly payment in this situation, you’ll receive more money over time.
Social Security is generally designed only to replace about 40% of your pre-retirement earnings. Many people supplement their retirement plan with other income sources, including individual retirement accounts (IRA) and 401(k)s. So when considering when to retire, your Social Security full retirement age should only be one factor.
Other considerations include when you become eligible to receive payments from your other retirement earnings without penalty, whether you can afford to retire early and your personal circumstances that may delay walking away from your job.
Take distributions from your retirement plan, including IRAs, 401(k)s and pension plans, without incurring the 10% early withdrawal tax if you’re age 59 1/2. Keep in mind that the withdrawal is subject to income tax, which is unavoidable unless you have a Roth IRA or Roth 401(k) account.
You may also face an additional 25% tax if you withdraw from a SIMPLE IRA within the first two years of joining the plan. So you might consider postponing retirement — even if you’re 59 1/2 — to avoid this extra penalty.
| Response | % of Americans |
|---|---|
| Less than $250k | 20% |
| $750k - $999K | 14% |
| $500k - $749k | 16% |
| $5 million + | 4% |
| $4 - $4.99 million | 1% |
| $3 - $3.99 million | 2% |
| $250k - $499k | 19% |
| $2 - $2.99 million | 4.38% |
| $1.5 - $1.99 million | 6.20% |
| $1 - $1.49 million | 14.46% |
One in five Americans (20%) think that they will be able to live on $250K or less in retirement, while a combined 31% say they will need more than $1 million.
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Your full retirement age is when you’re entitled to receive full Social Security benefits. You might be able to retire earlier, but your monthly check will be smaller. Since Social Security is likely only a portion of your retirement income, consider other retirement plans to help supplement your retirement cash flow.
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