Definition
Full Retirement Age (FRA) refers to the age at which an individual is eligible to receive full Social Security retirement benefits without any reductions. It is an essential consideration for individuals planning retirement to ensure they receive the maximum eligible benefits. Full retirement age can vary depending on one’s birth year.
Examples
- Birth Year 1943-1954: For individuals born within these years, the full retirement age is 66.
- Birth Year 1960 or Later: For individuals born in 1960 or later, the full retirement age is 67.
- Planning Scenario: Jane, born in 1955, checks her full retirement age, which is 66 years and 2 months. She chooses to retire at 62, accepting a reduction in her monthly benefit.
Frequently Asked Questions (FAQs)
What is the full retirement age for Social Security benefits?
The full retirement age for Social Security benefits varies depending on your birth year. It ranges between 65 to 67 years old.
Can I collect Social Security benefits before reaching full retirement age?
Yes, you can start collecting Social Security benefits as early as age 62, but with a permanent reduction in monthly benefits.
How are Social Security benefits reduced if I retire before full retirement age?
If you retire early, your benefits may be reduced up to 30%, depending on how many months before full retirement age you start collecting benefits.
Is the full retirement age the same universally?
No, the full retirement age may differ depending on the country’s social security system and regulations.
Can working after reaching full retirement age increase my benefits?
Yes, continuing to work and paying Social Security taxes after reaching full retirement age can increase your monthly benefit amount.
Related Terms
Early Retirement Age
This is the earliest age at which an individual can start receiving reduced Social Security retirement benefits, typically at age 62.
Delayed Retirement
This refers to postponing the receipt of Social Security benefits beyond the full retirement age, which can increase benefits up to a certain age, usually up to 70.
Social Security Benefits
Monthly payments made to eligible retirees and disabled people based on their lifetime earnings record maintained by the Social Security Administration.
Online References
- Social Security Administration (SSA): Official Website
- Investopedia: Full Retirement Age
- Wikipedia: Retirement Age
Suggested Books for Further Studies
- “Get What’s Yours - Revised & Updated: The Secrets to Maxing Out Your Social Security” by Laurence J. Kotlikoff, Philip Moeller, and Paul Solman
- “Social Security, Medicare & Government Pensions: Get the Most Out of Your Retirement & Medical Benefits” by Joseph Matthews
- “The Little Black Book of Social Security Secrets, Couples Ages 62-70: Act Before It’s Too Late” by James Lange
Fundamentals of Full Retirement Age: Social Security Basics Quiz
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