What Is Full Retirement Age (FRA)?

What Is Full Retirement Age (FRA)?

You need to know that the full retirement age (FRA) is the age when you can start getting your full Social Security retirement benefits without any cuts. It's sometimes called the normal retirement age.

Your FRA depends on when you were born. If you were born in 1955, it's 66 years and two months, and it goes up gradually to 67 for anyone born in 1960 or after.

If you claim benefits before hitting your FRA, those benefits get reduced permanently.

FRA isn't just for Social Security; it also applies to things like employer pensions. For folks like police officers, military members, or other public servants, full benefits often come after a set number of years served, not a specific age.

Key Takeaways

Let me break it down: FRA is the age you reach to get full Social Security benefits. It changes based on your birth year. In the US, it's 66 years and two months for 1955 births, rising to 67 for 1960 and later.

FRA can also mean the age for pension eligibility in other plans. Around the world, retirement ages usually fall between 65 and 67.

Understanding Full Retirement Age (FRA)

For US Social Security, the official FRA is 67 if you were born in 1960 or later. It's 66 for births from 1943 to 1954, and for 1955 to 1959, it adds two months per year up to 66 and 10 months.

Disadvantage of Claiming Benefits Before FRA

You can start claiming at 62, but if you do that before your FRA, your benefits drop permanently.

Take this example: If your FRA is 67 and you claim at 62, you get only 70% of the full amount. Wait until 65, and it's 86.7%.

Remember, about 40% of Americans depend entirely on Social Security for retirement, with no other savings.

Advantage of Claiming Benefits After FRA

If you were born in 1943 or later and delay past FRA, your benefit goes up 8% each year. Hold off until 70 for the max. No point waiting longer than that; benefits stop increasing.

Important Factors

Age isn't the only thing; your contributions over the years also determine your benefit size. You should calculate your breakeven age to pick the best time to claim and weigh the trade-offs.

History of Full Retirement Age

Social Security started in 1935 with FRA at 65. In 1983, laws raised it to up to 67 for those born 1938 or later, due to longer life expectancies.

Trustees say the Social Security Trust Fund faces deficits, with reserves gone by 2034 per 2023 reports. That's for combined OASI and DI funds, a year later than OASI alone.

Some politicians want to raise FRA further because of solvency issues. Fixes could include cutting benefits, raising taxes, or both, or even funding with debt.

Tip

Use the SSA's online calculator to find your exact FRA.

Average Retirement Age in the U.S.

According to Boston College's Center for Retirement Research, Americans are retiring later on average, but still before FRA. Men average 64.6 years, women 62.3.

College graduates drive this increase, retiring three years later than high school grads. High school grads often retire earlier due to poorer health, shorter life expectancy, physically demanding jobs, and less time off.

Full Retirement Age Around the World

Globally, FRA ranges from 56 to 67, sometimes differing by gender.

What Is My Social Security Full Retirement Age?

If born in 1955, it's 66 and two months. It rises to 67 for 1960 or later.

How Much Does Early Retirement Affect Social Security Benefits?

Claiming at 62 reduces benefits to 70% of FRA amount permanently.

Can I Work After Full Retirement Age?

Yes, you can work and collect full benefits at FRA. But if you claim before FRA and earn over $22,320 in 2024, benefits get reduced temporarily.

Once you hit FRA, no earnings limit applies, but before that month, $1 is deducted for every $3 over $59,520 in 2024. These limits adjust for inflation.

The Bottom Line

Full retirement age is when you can collect unreduced Social Security benefits, based on your birth year—67 for 1960+. You can claim from 62, but it cuts your monthly amount forever, which matters a lot for the 40% relying solely on it.