65 Is No Longer Full Retirement Age

Turning 65 has long been seen as the start of retirement. But for those born in 1960 or later, full Social Security retirement benefits don’t begin until age 67. That’s because federal law gradually raised the Full Retirement Age (FRA) to account for longer life expectancy and to help preserve the program’s finances.

Your FRA is when you’re eligible to receive 100% of your Social Security retirement benefit. Claiming earlier, starting as young as 62, reduces your monthly check for life. For example, if your FRA is 67 and you start at 65, you’ll only receive about 86.7% of your full benefit. On the flip side, delaying benefits beyond your FRA increases your monthly payment. For each year you wait past 67 (up to age 70), your benefit grows by roughly 8% annually. That could mean 24% more per month if you hold off until 70.

If you were born in 1960, your full retirement age is 67. That means although you may turn 65 in 2025, you’ll need to wait until 2027 to get your full benefit. The Social Security Administration provides calculators to help estimate what you’ll receive based on when you choose to claim.

When to start taking Social Security depends on your personal situation. Some important factors to weigh include your health and expected longevity, whether you plan to keep working, and other income sources available to you. If you expect to live well into your 80s or beyond, delaying benefits may result in more income over time. If you continue working after claiming early, your payments could be temporarily reduced depending on your earnings. Savings, pensions, or part-time income may give you the flexibility to delay benefits for a larger monthly amount later.

Understanding your full retirement age, and how claiming early or late impacts your income, is critical for sound retirement planning.

Don’t rely on outdated assumptions about retiring at 65. Call us at 605-275-5665 to explore your options and create a plan that fits your goals and needs. Making informed decisions now can help ensure financial stability for the years ahead.

Read more: Why the Social Security Retirement Age Is Now 67, Not 65