The full retirement age refers to the age at which individuals can receive full Social Security retirement benefits. Here are the key points about full retirement age based on the search results:
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Age Range: The full retirement age varies depending on the year of birth:
- For individuals born from 1943 to 1954, the full retirement age is 66.
- For those born from 1955 to 1960, the full retirement age gradually increases until it reaches 67.
- For anyone born in 1960 or later, full retirement benefits are payable at age 67.
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Benefit Reduction and Increase: If individuals start receiving benefits before their full retirement age, their benefits are reduced. Conversely, if they delay taking benefits from their full retirement age up to age 70, their benefit amount will increase.
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Actuarial Neutrality: The reductions and credits for early or delayed retirement are designed to be roughly "actuarially neutral," meaning that a person with average life expectancy will receive around the same lifetime benefits, either a smaller monthly benefit for a longer time, or a larger monthly benefit for a shorter time.
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Impact on Benefits: Claiming benefits before reaching full retirement age results in a permanent reduction in the monthly benefit amount. Conversely, delaying benefits until after full retirement age leads to a permanent increase in the monthly benefit amount.
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Earnings Test: Retirees who work while collecting Social Security benefits and are younger than their full retirement age are subject to the retirement earnings test. If their earnings exceed a certain limit, they may temporarily forfeit some or all of their benefits. However, once they reach full retirement age, their benefit is recalculated, and they may receive most of that money back.
In summary, the full retirement age is an important factor to consider when planning for retirement, as it determines the amount of Social Security benefits individuals will receive.
