Full Retirement Age – How does it effect Social Security Retirement Benefits?
Whew, that was a mouthful! Thanks for reading my article.
Alright, now let me explain what that means and how it is applied.
An individual’s Full Retirement Age in the context of Social Security Retirement Benefits is defined by the individual’s year of birth. Below is the table of the applicable Full Retirement Age by year of birth:
|Year of Birth||Full Retirement Age|
|1937 or earlier||65|
|1938||65 and 2 months|
|1939||65 and 4 months|
|1940||65 and 6 months|
|1941||65 and 8 months|
|1942||65 and 10 months|
|1943 – 1954||66|
|1955||66 and 2 months|
|1956||66 and 4 months|
|1957||66 and 6 months|
|1958||66 and 8 months|
|1959||66 and 10 months|
|1960 and later||67|
One item to note are that if an individual is born on January 1st then they should use the previous year. For example, if the date of birth is January 1, 1957, the Full Retirement Age is 66 years and 4 months; whereas if the date of birth is January 2, 1957, the Full Retirement Age is 66 years and 6 months.
So now we know what an individual’s Full Retirement Age is, but how does that affect their Social Security Retirement Benefits?
Does Full Retirement Age affect when an individual can begin receiving their Social Security Retirement Benefits?
No it does not. Every individual who has qualified to receive Social Security Retirement Benefits based on their own, or a living spouse or living ex-spouse’s, earnings history can begin receiving them at age 62 regardless of their Full Retirement Age. Eligible widows and widowers can begin receiving their Social Security Retirement Benefits based upon their deceased spouse’s earnings history as early as age 60, or age 50 if disabled, regardless of their Full Retirement Age.
Does Full Retirement Age affect the amount of an individual’s Social Security Retirement Benefits?
Yes it does. If an individual begins receiving Social Security Retirement Benefits at any time other than at their Full Retirement Age, the amount of the benefit is decreased if the election is prior to their Full Retirement Age and is increased if the election is after their Full Retirement Age.
The explanations and examples as to how much the decrease or increase in benefit amount is the subject of an upcoming post.
Photo by Aaron Burden
Phone: 605 787 1255
910 5th Street, Suite 106
Rapid City, South Dakota 57701
Iron Mountain Financial Planning LLC (“IMFP”) is a registered investment adviser offering advisory services in the States of South Dakota and Wyoming and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by IMFP in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of IMFP, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.