As you plan and save for retirement, deciding when you’ll take Social Security is one of the most important financial decisions you’ll make. And typically, once you start taking benefits, you won’t be able to stop them (though there are
1. Your full retirement age (FRA)
Full retirement age (also known as FRA or “normal retirement age”) is when you’re eligible to receive your full Social Security benefits. That’s 66 if you were born between 1943 and 1954, and it gradually increases to 67 if you were born in 1960 or later. After that, you’ll earn an extra 8% for each year you delay filing up to age 70. Though that isn’t always an option for everyone.
What’s your full retirement age?
If you were born in: | Your full retirement age is: |
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 |
Claiming Social Security early
You can claim your own Social Security as early as age 62. But your retirement benefit will be reduced if you take it before FRA. If you’re within 36 months of that, your benefit is permanently reduced five-ninths of 1% each month before FRA. Retire sooner than that and your benefits are further reduced by five-twelfths of 1% for each additional month (5% per year).
Andrew Mortenson, a Thrivent financial consultant in West Bend, Wisconsin, says he often meets with clients who wish to claim Social Security at their earliest opportunity. But it’s important to sit down and assess the pros and cons within each individual’s circumstance.
“We walk clients through a process,” says Mortenson. “We determine what you want in retirement and why. We take the time to understand your income needs, as well as different options to fill the income gap that occurs at retirement. Social Security planning, tax planning, investments—they’re all tied together. They’re pieces of your puzzle.”
Early retirement Social Security example
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