The age at which you can start collecting Social Security benefits depends on your full retirement age (FRA), which is not a one-size-fits-all number. The FRA is influenced by the year you were born, and understanding when it falls is crucial to maximize your benefits. This guide will explore the evolution of FRA, how it affects your benefits, and why it’s essential to know your specific FRA before claiming Social Security.

If you were born in:	You reach full retirement age in:
01/05/1958	01/01/2025
01/06/1958	01/02/2025
01/07/1958	01/03/2025
01/08/1958	01/04/2025
01/09/1958	01/05/2025
01/10/1958	01/06/2025
01/11/1958	01/07/2025
01/12/1958	01/08/2025
—	01/09/2025
—	01/10/2025
01/01/1959	01/11/2025
01/02/1959	01/12/2025

The Evolution of Full Retirement Age

The concept of full retirement age has evolved significantly since Social Security was introduced in 1935. Initially, the standard age for retirement was 65, a figure that remained in place for decades.

However, as the Social Security program faced financial instability in the early 1980s, lawmakers decided that raising the FRA would help ensure the program’s long-term sustainability. The idea was to gradually increase the age at which workers could claim full benefits to keep up with rising life expectancies.

By 1983, Congress enacted changes to raise the FRA for future retirees. This increase was implemented slowly to prevent workers close to retirement from feeling blindsided by the changes. As a result, the FRA now varies depending on when you were born. Those born before 1960 are subject to an FRA that ranges between 66 and 67, while those born in 1960 or later have an FRA of 67.

This process is still ongoing. If you were born before 1960, you will still retire between the ages of 66 and 67. However, if you were born after 1960, your full retirement age will be 67.

Why the Right Retirement Age Matters

So, why is it so important to know your exact full retirement age? The answer lies in the way Social Security benefits are calculated.

While the FRA represents the age at which you can claim 100% of your Social Security benefits, workers often choose to claim their benefits earlier, which can lead to reduced payments. Understanding how these reductions work is crucial to making the best decision about when to claim.

For instance, those born in 1960 or later can claim Social Security at age 62, but this decision will result in a 30% reduction in monthly benefits. This reduction happens because Social Security penalizes early claimants to reflect the longer period over which they will receive benefits.

Specifically, the reduction works as follows:

• For the first 36 months before FRA, the benefit reduction is 0.55% per month.
• After 36 months, the reduction slows to 0.42% per month.

For someone born in 1960, claiming benefits at age 62 will result in receiving 30% less than if they wait until age 67 to claim their full benefits. Over time, this can add up to a substantial amount, so knowing the full retirement age is crucial for making an informed decision.

Despite the reduction, claiming at 62 remains one of the most popular ages to start receiving benefits. Many workers are eager to retire early or claim their benefits due to financial necessity or the desire for a change. The flexibility to begin receiving benefits at 62 offers immediate relief to many, even if it means accepting a smaller monthly check.

Special Considerations for Age 65

While 62 is the most common age to begin claiming benefits, age 65 also holds special significance for many workers. Despite changes to the Social Security program, age 65 continues to be the age at which workers become eligible for Medicare. For those who rely on health insurance for their medical needs, Medicare eligibility is a major milestone.

Because health insurance is one of the largest expenses in retirement, many workers find it appealing to retire at age 65. Although this is still technically early retirement in terms of Social Security, the financial burden of purchasing private insurance is alleviated.

The benefit reduction for claiming at age 65 is also less severe than at age 62, with workers typically receiving about 87% of their full benefit at that age, compared to a 30% reduction at age 62.

Retiring After Full Retirement Age: Waiting for Bigger Benefits

For those who are able and willing to continue working past their full retirement age, there’s another option: delaying benefits until age 70. If you wait until age 70 to claim Social Security, your benefits will be increased by 24% compared to your full retirement benefit. This is an attractive option for those who have the financial flexibility to work longer and delay claiming.

This strategy, however, is not feasible for everyone. Many workers are eager to retire as soon as they hit their full retirement age, and the prospect of waiting an additional three years for a higher payment may not be worth it for those who need immediate financial support.