For many people, age 65 is synonymous with retirement. That is, after all, the time that the majority of people first qualify for Medicare, the government’s health insurance program for the elderly.
Some people are unaware that 65 is no longer the Social Security full retirement age. In fact, a 2024 survey by insurance company MassMutual found that almost half of those who are close to retirement do not know the current full retirement age.
Although you can begin receiving Social Security benefits at age 62, you must wait until you reach full retirement age in order to receive the full benefit. Additionally, if you continue to work and claim benefits early, you may receive smaller monthly payments.
Navigating the complexities of Social Security retirement benefits can be daunting, especially when it comes to determining your full retirement age and understanding the impact of starting benefits at different times. This guide aims to provide clarity and insights specifically for individuals born between 1943 and 1954, helping you make informed decisions about your retirement planning.
Full Retirement Age: A Key Factor in Your Benefits
Your full retirement age (FRA) is the age at which you are eligible to receive your full Social Security retirement benefits. For individuals born between 1943 and 1954, the FRA is 66. This means that if you wait until age 66 to start receiving benefits, you will receive 100% of your monthly benefit amount.
Starting Benefits Early: Reduced Benefits, Increased Flexibility
While you can start receiving Social Security retirement benefits as early as age 62, it’s important to understand that this will result in a reduced benefit amount. The table below outlines the percentage of your full retirement benefit you would receive if you start benefits at different ages between 62 and 66:
| Age at which you start benefits | Percentage of full retirement benefit |
|---|---|
| 62 | 75.0% |
| 62 + 1 month | 75.4% |
| 62 + 2 months | 75.8% |
| … | … |
| 65 + 11 months | 99.4% |
| 66 | 100.0% |
As you can see, starting benefits earlier significantly reduces your monthly payments. However, it also provides you with greater flexibility and access to income earlier in your retirement.
Delayed Retirement: Increased Benefits, Long-Term Growth
If you choose to delay receiving benefits beyond your full retirement age, your monthly benefit amount will continue to increase. The table below shows the percentage increase for each month you delay benefits up to age 70:
| Age at which you start benefits | Percentage of full retirement benefit |
|---|---|
| 66 | 100.0% |
| 66 + 1 month | 100.7% |
| 66 + 2 months | 101.3% |
| … | … |
| 69 + 11 months | 131.3% |
| 70 or later | 132.0% |
Delaying benefits can significantly increase your monthly payments, providing you with a higher income stream in your later retirement years. However, it’s important to consider your financial needs and life expectancy when making this decision.
Maximizing Your Retirement Benefits: A Personalized Approach
The decision of when to start receiving Social Security retirement benefits is a personal one, and there is no one-size-fits-all answer. Factors such as your health, life expectancy, financial needs, and other sources of income should be carefully considered.
Here are some additional points to keep in mind:
- Life expectancy: If you have a longer life expectancy, delaying benefits may be more advantageous as you will receive higher payments for a longer period.
- Health: If you have health concerns and expect to have a shorter life expectancy, starting benefits earlier may provide you with more income while you are still able to enjoy it.
- Financial needs: If you have significant retirement savings or other sources of income, you may be able to afford to delay benefits and receive higher payments later.
- Spouse’s benefits: If you are married, your spouse’s retirement age and benefits may also influence your decision.
Additional Resources and Support
The Social Security Administration (SSA) provides a wealth of resources to help you understand your retirement benefits and make informed decisions. You can access these resources online at www.ssa.gov or by calling the SSA at 1-800-772-1213.
Understanding your full retirement age and the impact of starting benefits at different times is crucial for making informed decisions about your retirement planning. By carefully considering your individual circumstances and exploring the available options, you can maximize your Social Security benefits and ensure a secure and comfortable retirement.
Even if you keep delaying receiving benefits, your monthly benefit stops growing when you turn 70.
All of your monthly benefit is yours if you begin receiving benefits at age 66. Your monthly benefit will increase if you wait to start receiving retirement benefits until after reaching full retirement age.
If you choose to postpone retiring, remember to enroll in Medicare by the time you turn 65.
The chart below explains how delayed retirement affects your benefit. Your date of birth and the number of months you postpone the start of your retirement benefits determine how much more you will receive. If you start receiving retirement benefits at age:
Taking Benefits at Different Times
You can determine the effect of starting to receive Social Security benefits earlier or later after determining your full retirement age. “Knowing what their benefit amounts are at different ages is the first exercise most people go through,” Raymond J. Lucas, Jr. sent an email to Integrated Financial Partners’ senior vice president of financial planning in Worcester, Massachusetts.
Early Social Security enrollment will result in a temporary reduction in your benefit. For example, your monthly benefit will be reduced by more than a quarter if you claim benefits at age 62 even though your full retirement age is 66.
Another option is to delay Social Security checks. “You can choose to defer your benefit until you turn 70 years old once you reach full retirement age,” stated in an email Chuck Czajka, a certified financial fiduciary at Macro Money Concepts in Stuart, Florida.
As you wait each year, your payment will rise by 8% annually until you reach 70%. “Remember that after you pass away, this might also be a benefit for survivors,” Czajka stated.
READ:
What You Need to Know About Social Security’s Full Retirement Age | When to File For Social Security
FAQ
What is full retirement age of someone born in 1954?
At what age do you get 100% of your Social Security?
When can I retire if I was born in 1954?
Can you collect Social Security at 66 and still work full time?
What is my full retirement age if I was born in 1960?
If you were born in 1960 or later, your full retirement age is 67. However, if you were born before 1960, your full retirement age will be earlier. Use the table below to find out when you can get 100% of your Social Security retirement benefit. If you start receiving benefits at 62, your retirement benefit is reduced by 66. 25%.
What is the Social Security full retirement age?
The Social Security full retirement age is 66 for most baby boomers born between 1943 and 1954. However, for people born in the five years after that the full retirement age again increases in two-month increments each year. 1955: 66 and two months. 1956: 66 and four months. 1957: 66 and six months. 1958: 66 and eight months.
When does Social Security retire?
The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later. The earliest a person can start receiving Social Security retirement benefits will remain at age 62.
How old do you have to be to get retirement benefits?
The age at which you can get your full retirement benefit depends on when you were born. For those born between 1943 and 1959, it’s 66—which a couple months tacked on spending on which year in that range you were born in. If you were born in or after 1960, the full retirement age is 67.