Full Retirement Age

Full Retirement Age (FRA) is the age at which you can receive your full Social Security benefits without any reductions. For those born in 1960 or later, FRA is 67 years. If you claim benefits before your FRA, your monthly payments can be reduced by up to 30%. For example, if your full benefit is $2,000 per month and you retire at age 62, you might only receive about $1,400 per month, a significant decrease.

Understanding your FRA is crucial for retirement planning. Delaying benefits past your FRA can increase your monthly payment, with an 8% increase for each year you wait until age 70. This means if you delay from 67 to 70, your monthly benefit could rise to $2,480, providing a stronger financial base during retirement. Many people mistakenly believe they can retire at any age without considering the impact on their benefits.

To maximize your retirement income, assess your personal situation, such as health, financial needs, and whether you plan to work part-time. Consider using a retirement planning calculator to visualize different scenarios based on your FRA, retirement age, and benefit amounts. Remember, making informed decisions about when to claim your Social Security benefits can greatly influence your overall financial security in retirement.