Harry
For many years, Americans believed that 65 was the golden age to retire with full Social Security benefits. But this rule has changed. In 1983, Congress decided that people would live longer and therefore collect benefits for more years.
To keep the system strong, lawmakers increased the full retirement age to as high as 67. This change was phased in slowly over 33 years.
Today, millions of Americans approaching retirement need to understand these rules clearly.
Knowing your full retirement age (FRA), how early retirement reduces payments, and how delaying benefits can increase them will help you make smart financial choices. Let’s break down the latest information in a simple way.
Retirement Age By Birth Year
The Social Security Administration (SSA) has set a chart that explains the full retirement age based on your year of birth.
| Year of Birth | Full Retirement Age |
|---|---|
| 1943–1954 | 66 years |
| 1955 | 66 years and 2 months |
| 1956 | 66 years and 4 months |
| 1957 | 66 years and 6 months |
| 1958 | 66 years and 8 months |
| 1959 | 66 years and 10 months |
| 1960 or later | 67 years |
This chart makes it clear: if you were born in 1960 or after, you must wait until 67 to claim your full benefit.
Early Vs. Late Retirement – How Payments Change
One of the most important decisions you’ll make is when to retire. Let’s look at the impact:
- Retiring Early (62–66 years): You can take your benefits sooner, but they will be reduced permanently. For example, claiming at 62 may cut your monthly check by around 25–30%.
- At Full Retirement Age (66–67 years): You’ll receive the full amount promised.
- Delaying Retirement (after FRA to 70 years): Your monthly check will grow each year you wait, with increases of up to 8% annually until age 70.
This means someone who waits until 70 could receive hundreds of dollars more every month compared to retiring at 62.
What About Medicare?
Even though the full retirement age for Social Security has increased, the rules for Medicare remain unchanged. You are still expected to sign up for Medicare at age 65.
The government recommends applying three months before your 65th birthday. If you delay, you may face higher costs for:
- Medicare Part B (medical insurance)
- Medicare Part D (prescription drug coverage)
Failing to enroll on time can lead to late penalties that last for as long as you have Medicare. So, even if you wait until 67 or later for Social Security, don’t postpone signing up for Medicare at 65.
Why Did Congress Raise The Retirement Age?
The reason behind the increase is simple: people are living longer than ever. When Social Security first started, the average life expectancy was lower, and most people collected benefits for fewer years. Today, many retirees live well into their 80s or 90s.
By slowly raising the full retirement age from 65 to 67, the government makes sure the program can continue to pay future generations without running out of money.
The rules for Social Security retirement age are different than they were in the past. While 65 was once the standard, your full retirement age now depends on your birth year. Retiring early means less money each month, while waiting until 70 can significantly boost your benefits.
At the same time, Medicare still begins at 65, so it’s important not to delay enrollment. Planning ahead and knowing your options will help you make the best decision for your financial security in retirement.
FAQs
Can I retire early at 62?
Yes, but your monthly check will be permanently reduced compared to waiting until full retirement age.
What happens if I retire at 70?
You will receive a higher monthly benefit thanks to delayed retirement credits.
Do I still sign up for Medicare at 65?
Yes, even if your Social Security full retirement age is later, Medicare starts at 65.