Age 67 is when you become eligible to receive 100% of your Social Security retirement benefits if you were born in 1960 or later. If you decide to claim benefits before reaching your FRA, your monthly payments will be reduced. Conversely, delaying your benefits beyond the FRA increases your monthly payments.
Early Retirement
You can begin receiving Social Security benefits as early as age 62. However, claiming before your FRA will reduce your monthly benefit amount. For example, if you were born in 1960, retiring at 62 would reduce your benefit to 70% of what you would receive at 67. The reduction follows a sliding scale depending on the exact month you start claiming. For example, claiming benefits at age 63 would result in 75% of your FRA benefit, while waiting until 65 would provide about 86.7% of your benefit.​
This reduction also applies to spouses claiming Social Security based on their partner’s earnings. For example, if the primary wage earner takes benefits early, the spousal benefit is also reduced. If the spouse begins receiving benefits at age 62, they could see their share drop to as low as 32.5% of the primary earner’s full benefit. On the other hand, if the primary wage earner delays until age 70, their benefit and the spouse’s benefit increase significantly.
Full Retirement Age for those born in 1960 or later
If you were born in 1960, your full retirement age (FRA) is 67. This means you can start collecting your full Social Security benefits when you reach that age, with no reduction in your monthly benefits.
Choosing when to start receiving your Social Security benefits can greatly impact how much you receive in your monthly payment. If you claim your benefits at your FRA of 67 years, you will receive 100% of your entitled benefit. However, your monthly payment will increase if you delay your claim.
Delayed retirement
If you delay claiming your Social Security benefits beyond your FRA, your benefit amount will increase monthly until you reach age 70. For those born after 1960, delaying benefits until age 70 could increase the benefit by up to 8% per year after reaching 67. This means by waiting until 70, you can receive 124% of your full benefit, maximizing your monthly Social Security income.
For individuals in good health or with longer life expectancies, delaying benefits can be a smart financial move. It ensures higher monthly payments that could provide better security in your later years. However, beyond age 70, there is no additional financial benefit to delaying.
Other considerations
While your FRA determines when you can claim full retirement benefits, Medicare eligibility begins at age 65, regardless of when you retire. This distinction is important for those planning their healthcare needs post-retirement. Additionally, individuals who continue to work after claiming Social Security benefits before their FRA may face reductions in their monthly benefit if they exceed the annual earnings limit, which in 2023 was $19,560.
