The New “Full Retirement Age”



The prevailing thought among most people that we interact with is that the retirement age for everyone is 65 years old. However, only if you were born in 1937 or before, would your full retirement age be 65.

For example, if you were born between 1943 and 1954, your full retirement age is 66 years old. If you were born after 1960, your full retirement age is 67 years old. The full retirement age will continue to increase over time as Americans live longer and life expectancy rates go up.

What about early retirement?

You can start receiving retirement at age 62. If you do this, however, your retirement benefits can be reduced up to 30%, depending on how many months you choose to retire prior to your full retirement age. From a benefit-maximization perspective, the best choice is to wait until you reach full retirement age. If you delay taking your retirement even after you reach your full retirement age, you may be able to increase your monthly benefit amount.