Understanding Social Security Retirement Age

When planning for retirement, one of the most important decisions you’ll make is when to start collecting Social Security benefits. Your “full retirement age” (FRA) determines how much you receive in monthly payments and can significantly impact your lifetime income. Whether you're in your 50s or nearing 62, understanding Social Security retirement age is essential to optimizing your financial future.

Understanding Social Security Retirement Age

What Is the Full Retirement Age?

The full retirement age is the age at which you become eligible to receive 100% of your Social Security retirement benefit. For people born between 1943 and 1954, the full retirement age is 66. For those born in 1960 or later, it rises to 67. If you were born between those years, your FRA falls somewhere in between.

The Social Security Administration (SSA) gradually increased the FRA due to longer life expectancy and financial pressures on the program. This means younger generations must wait longer to receive full benefits.

Year of BirthFull Retirement Age1954 or earlier66195566 and 2 months195666 and 4 months195766 and 6 months195866 and 8 months195966 and 10 months1960 or later67

Early vs. Delayed Retirement: What’s the Impact?

You can start collecting Social Security as early as age 62, but your benefit will be permanently reduced. On the flip side, delaying retirement past your FRA can boost your benefits by up to 8% per year until age 70.

Here’s how it works:

• Claiming at 62: You’ll receive around 70-75% of your full benefit.

• Claiming at FRA: You’ll receive 100% of your benefit.

• Claiming at 70: You’ll receive up to 124%-132% of your benefit depending on your birth year.

While taking benefits early might make sense if you have health concerns or immediate financial needs, delaying benefits generally pays off if you live well into your 80s or beyond.

How Retirement Age Affects Spousal and Survivor Benefits

Your Social Security retirement age doesn’t just affect your own benefits—it also impacts spousal and survivor benefits. A spouse can claim up to 50% of your benefit once they reach their own full retirement age. If you claim early, it may reduce the amount your spouse or survivor can receive.

Survivor benefits are also tied to your age at death and whether you claimed benefits early. If you pass away before starting benefits, your spouse can claim your full amount starting at their own FRA. But if you claimed early, they may receive a reduced amount.

Should You Wait Until 70?

Delaying your Social Security benefit past FRA can result in significant long-term gains. For example, if your full benefit is $2,000 per month at 67, waiting until 70 increases it to roughly $2,480 per month—a 24% increase. That’s nearly $6,000 more per year for life.

However, this strategy only pays off if you live long enough to recoup the benefits you skipped between 67 and 70. The break-even point is often in your late 70s or early 80s. If longevity runs in your family and you have other income to rely on, waiting could be a smart move.

What About Working While Receiving Benefits?

If you claim Social Security before reaching full retirement age and continue working, your benefits may be temporarily reduced depending on your earnings. In 2025, the earnings limit is $22,320. If you earn more, $1 is withheld for every $2 above the limit.

Once you reach your FRA, there’s no penalty for working while collecting benefits. In fact, your benefit may even be recalculated to reflect your higher lifetime earnings.

How to Decide the Best Time to Retire

There’s no one-size-fits-all answer. Your ideal Social Security retirement age depends on factors like:

• Your current health and family longevity

• How much you’ve saved in retirement accounts

• Whether you plan to work part-time in retirement

• Your marital status and your spouse’s claiming strategy

• Whether you need the income right away

A financial advisor can run a personalized analysis based on your unique circumstances and goals.

Final Thoughts

Understanding Social Security retirement age is more than a date on the calendar—it’s a key part of building a smart retirement plan. By weighing the pros and cons of early, full, or delayed benefits, you can make an informed decision that supports your financial well-being for years to come.

If you're approaching retirement, now is the time to map out your strategy. Social Security is one piece of the puzzle, but when timed right, it can help you enjoy a more secure and comfortable retirement

Looking for guidance on how to align your financial plan with your ideal retirement location? Connect with a trusted advisor today and take the first step toward building a secure, personalized retirement strategy.