As the conversation around the future of retirement intensifies, one topic remains central to financial planning in America: the Social Security retirement age.
With proposed policy changes and rising life expectancy, both current and future retirees must revisit their expectations around when — and how — they should claim their benefits.
Whether you’re nearing retirement or simply planning ahead, here’s what you need to know.
What Is the Full Social Security Retirement Age?
The full retirement age (FRA) refers to the age at which you are entitled to receive 100% of your Social Security benefits. This age depends on your birth year:
| Birth Year | Full Retirement Age |
|---|---|
| 1955 | 66 years and 2 months |
| 1958 | 66 years and 8 months |
| 1960 or later | 67 years |
At FRA, you are no longer penalized for working while receiving benefits, and your monthly payment reaches its full potential — not accounting for delayed retirement credits, which can further increase your payout.
Claiming Early: What Happens at Age 62?
You can begin receiving Social Security benefits as early as age 62 — but with a catch: doing so can reduce your benefits by up to 30%.
For example, someone whose FRA is 67 and claims at 62 will receive only 70% of their full benefit.
This reduction is permanent. Even with annual cost-of-living adjustments (COLAs), your base benefit remains lower than if you had waited.
Can You Wait Past Full Retirement Age?
Yes — and it can pay off. For every year you delay claiming Social Security past your FRA until age 70, you earn delayed retirement credits of approximately 8% per year.
-
Claim at 68? Get about 108% of your FRA benefit.
- Advertisement - -
Claim at 70? Get 124% of your FRA benefit.
After 70, there’s no additional increase, so that’s typically the latest anyone should claim.
Recent Proposals: Could the Retirement Age Change?
In 2025, policymakers have floated proposals to raise the full retirement age to 68 or higher in response to demographic pressures and Social Security’s projected funding shortfalls.
While no law has passed yet, the direction is clear: future retirees may face a higher FRA, potentially lowering benefits for those who retire early under new rules.
The Impact of Retirement Age on Financial Planning
The Social Security retirement age is more than a date on a calendar — it shapes your income, investment strategy, and lifestyle. Here are key considerations:
-
Health and longevity: If you’re in good health and expect to live into your 80s or beyond, waiting to claim benefits can yield significantly more over time.
-
Current savings: If your 401(k), IRA, or other assets can sustain you, deferring Social Security can maximize lifetime income.
-
Spousal benefits: Your decision can affect your spouse’s survivor benefits — another reason to consider waiting.
Bottom Line
Understanding the nuances of the Social Security retirement age is essential for anyone aiming for a financially secure retirement.
With policy shifts on the horizon and increasing life expectancy, strategic timing is more critical than ever.
Whether you plan to retire at 62, 67, or 70, your choice will have long-term consequences. Stay informed, review your plan regularly, and consult with a financial advisor to make the most of your Social Security benefits.
Also Read
Canada Child Benefit Set to Increase by 2.7% in July 2025: What Parents Need to Know
Ford Recalls More Than 273,000 SUVs Over Brake Line Defect