What Is Full Retirement Age for Social Security?

Do you know what your Full Retirement Age is? When it comes to Social Security, your Full Retirement Age (FRA) is when you can receive your full Social Security benefits. Knowing your FRA can help you make better decisions about when to apply for benefits and how much you’ll receive.

At The Keener Law Firm, we believe you should know everything that can affect your benefits and how filing for retirement benefits before your FRA can permanently affect your benefits. You should also understand what happens to your Social Security Disability Insurance (SSDI) benefits when you reach your full retirement age. If you have questions about your Social Security benefits, call The Keener Law firm today. We are ready to help with whatever issue you are facing.

What Is Full Retirement Age (FRA)?

Full Retirement Age (FRA) is the age at which you become eligible to receive 100% of your Social Security retirement benefits. The Social Security Administration (SSA) uses FRA to determine when you can stop working and collect full benefits without reducing your benefits due to early retirement. Your FRA depends on the year you were born, and it plays a role in both retirement and disability benefits.

How Is Full Retirement Age Determined?

Your FRA is based on your birth year, according to the Social Security Administration’s guidelines. Here’s how it breaks down:

• If you were born before 1938, your FRA is 65.
• If you were born between 1938 and 1959, your FRA gradually increases by a few months each year.
• If you were born in 1960 or later, your FRA is 67.

For example, if you were born in 1958, your FRA is 66 years and 8 months. If you were born in 1959, your FRA is 66 and 10 months. If you were born in 1960 or later, your FRA is 67.

Why Did the Government Change the Full Retirement Age?

Originally, Social Security benefits were set up with a standard retirement age of 65. However, as life expectancy increased and the financial demands on the Social Security system grew, Congress passed the Social Security Amendments of 1983. These changes gradually raised the FRA to 67 for individuals born in 1960 and later.

The purpose of increasing the FRA was to balance the strain on Social Security funding while still allowing retirees to collect benefits. While still uncertain, Congress is again considering raising the FRA for people far from retirement, such as those under 50 years of age.

How Does FRA Affect Early Retirement Benefits?

You can start receiving Social Security retirement benefits as early as age 62, but doing so means accepting a permanent reduction in your monthly payments. The reduction depends on how many months before your FRA you decide to start collecting benefits.

For example:

• If your FRA is 67 and you claim benefits at 62, your monthly benefit will be reduced by about 30%.
• If your FRA is 66 and you claim benefits at 62, your reduction will be about 25%.

These reductions are permanent, so claiming benefits early means you’ll receive a lower monthly payment for the rest of your life. In some cases, claiming benefits before your full retirement age may be advantageous, depending on how many years after your full retirement age it would take to recoup the benefits you could receive if you claimed the benefits closer to but still before your FRA.

How Does FRA Affect Social Security Disability Benefits?

If you receive Social Security Disability Insurance (SSDI), your FRA is important because it marks the point when your disability benefits automatically convert to retirement benefits. The amount you receive does not change; the only difference is that SSA classifies your payments as retirement benefits rather than disability benefits.

For example, if you are receiving SSDI at age 64 and your FRA is 66, your benefits will switch to standard retirement benefits when you turn 66. The transition happens automatically, and you don’t need to take any action.

Can You Apply for Disability Benefits If You Are Close to FRA?

If you develop a disability near your FRA, you might wonder whether to apply for SSDI or just claim early retirement benefits. Applying for SSDI is usually the better option if you qualify because:

• SSDI benefits are not reduced based on age.
• If you are approved for SSDI, you will receive your full benefit amount, rather than a reduced early retirement benefit.
• You may be eligible for back pay, depending on when your disability began and when you applied.

Since early retirement benefits are permanently reduced, applying for SSDI should help you receive a higher benefit amount if you qualify.

How Does FRA Affect the Amount of Your Social Security Benefits?

Your FRA determines how much of your earned Social Security benefits you receive. If you wait until your FRA, you’ll receive 100% of your benefits based on your earnings record. However, if you claim benefits before your FRA, the SSA applies a reduction.

On the other hand, delaying your benefits beyond your FRA can increase your monthly payments. For every year you delay taking Social Security beyond your FRA (up to age 70), your benefits increase by about 8%. This means if your FRA is 67 and you wait until 70 to claim, your monthly benefit could be as much as 24% higher than if you had claimed at 67.

What If You Work After Reaching FRA?

If you continue working past your FRA, you can still receive Social Security benefits without a reduction. Before you reach FRA, the SSA may reduce your benefits if your income exceeds a certain threshold. However, once you reach FRA, your benefits are no longer affected by your earnings, allowing you to work without worrying about losing a portion of your Social Security payments.

Additionally, if you keep working after FRA, your Social Security benefits could increase if your recent earnings replace lower-earning years in your record. The SSA recalculates benefits each year to account for any additional income.

Should You Claim Social Security Benefits at Your FRA or Wait?

The decision to claim Social Security at your FRA or delay it depends on several factors, including your financial needs, health, and other sources of income. If you need the money immediately, claiming at FRA ensures you receive your full benefits. However, if you can afford to wait, delaying benefits can lead to higher monthly payments for the rest of your life.

It’s important to consider your long-term financial situation before deciding when to claim Social Security. Consulting with an experienced professional at The Keener Law Firm who understands Social Security rules can help you make the best choice for your circumstances.

Do You Have Questions About Your Social Security Benefits?

If you’re approaching retirement or have questions about how your benefits might be affected, The Keener Law Firm can provide guidance tailored to your individual situation. Our decades of experience dealing with Social Security’s complex rules and regulation means we know the answers you need.

If you are dealing with a disability claim, making the right decisions about Social Security benefits is even more important. The Keener Law Firm is dedicated to helping disabled Americans get and keep the Social Security benefits they deserve. Contact us today to discuss your case and ensure you receive the benefits you’re entitled to.