full retirement age
The age at which a person can claim full Social Security retirement benefits without reduction — currently 67 for those born after 1960.
Example
“Claiming Social Security before full retirement age of 67 permanently reduces monthly benefits.”
Memory Tip
FULL RETIREMENT AGE = 67 for most people. Before = reduced benefits. After = increased benefits.
Why It Matters
Understanding your full retirement age is crucial because claiming Social Security before this age results in permanently reduced monthly benefits, while waiting past it increases your payments. This decision directly impacts your retirement income for decades and should factor into your overall retirement planning strategy.
Common Misconception
Many people believe they must wait until full retirement age to retire, but you can actually retire whenever you want and claim Social Security as early as age 62. However, claiming early means accepting a significantly smaller monthly benefit for the rest of your life.
In Practice
If you were born in 1962, your full retirement age is 66 and 10 months, at which point you could claim your full Social Security benefit of perhaps 2000 dollars per month. If you claimed at 62 instead, you might receive only 1320 dollars monthly, but if you waited until 70, that same benefit could grow to nearly 2480 dollars monthly.
Etymology
FULL (complete, unreduced) RETIREMENT (stopping work) AGE (years old). The AGE for FULL (unreduced) RETIREMENT benefits.
Common Misspellings
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Related Terms
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See Also
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