A Guide to Knowing Your ‘Full Retirement Age’ for Social Security

The age 65 has always carried big significance. For baby boomers and those from the previous generation, age 65 was a target. It was the unofficial age for retirement.

But we need to adjust our thinking when it comes to that number.

Today, many people who turn 65 are still working and, thanks to improved life expectancy, can often look forward to 20 more years of good life and relatively good health.

In 2024, the age 65 has only one official designation; It’s when American citizens are required to sign up for Medicare. Otherwise, 65 means nothing in particular.

And that includes when it comes to Social Security.

It does care how old you are when you begin to accept Social Security benefits, because that sets the amount you will receive monthly until you die.

The longer you delay taking Social Security benefits, the more you will receive in monthly benefits until you pass away, up to age 70, when the increases stop. But the age 65 plays no role.

Ages That Matter to Social Security

There are certain ages that DO matter to Social Security, and here they are:

When You Turn 62

That is when you can first claim Social Security benefits, unless you have a health factor that would allow you to receive SS benefits at an earlier age. NOTE: You do not need to be “retired’’ to receive SS benefits, but your monthly benefit amount can be reduced if you are making more than $1,860 a month from work.

More details on working and collecting Social Security benefits.

When You are 66 to 67

If you were born between 1943 and 1954, your full retirement age is 66.

If you were born from 1955 to 1960, your full retirement age increases gradually up to age 67.

Anyone born since 1961 has a full retirement age of 67.

When You Turn 70

This is the age when your monthly Social Security benefits stop increasing, unless there is a cost of living adjustment.

What Is ‘Full Retirement Age?’

In the original Social Security Act of 1935, the “full retirement age” was 65 years old. But, improvements in life expectancy caused the Social Security Administration to increase the age of “full retirement” over time.

Today, the SSA has set the age of 67 as “full retirement age’’ for anyone born after 1960. But “full retirement age” does not mean anything when it comes to determining or maximizing your Social Security benefits.

Your monthly benefit increases for every month you do not accept Social Security benefits, up to age 70. The longer you wait, the more you are paid each month up to age 70. After you reach age 70, your monthly benefits do not increase unless there is a cost-of-living adjustment to the benefit schedule.

So what does “full retirement age’’ mean? Effectively, nothing.

According to the Social Security Administration, the average Social Security benefit check as of August 2023 is $1705.79. The maximum allowable monthly Social Security benefit payment is $4,873.

The amount is determined by how many years a person contributed to the Social Security program through their paychecks from work, and at what age they decided to start accepting benefits.

So, Why Do I Care When I Turn 65?

When you turn 65, you are eligible for Medicare, which matters if you are concerned about health care costs.

In the United States of America, there is absolutely no way to ignore the fact that you are about to turn 65 years old, because Medicare won’t let you.

Six months prior to turning 65, you begin to receive mailings from private insurance companies offering you so-called “Medigap’’ policies which will cover the costs not covered by the standard Medicare Parts A and B, which are provided by the federal government.

It is estimated that one out of every three Medicare recipients utilize a Medigap policy to defray medical care costs.

To confuse people even more about whether Social Security cares that you are turning 65, you must go to the Social Security website, ssa.gov, to sign up initially for Medicare. Your official information from Medicare will come in the mail from the Social Security department of the federal government.

Otherwise, the main reason to anticipate turning 65 is that you are likely to pay less for food at all of the restaurant chains in America which offer discounts to “senior citizens.”

Frequently Asked Questions (FAQs) About Full Retirement Age

There are a lot of questions about the full retirement age and what benefits might come your way when you reach it. We’ve rounded up answers to the most commonly asked questions.

Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder.

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