Understanding Social Security Full Retirement Age | SafeMone

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Learn how full retirement age impacts your Social Security benefits. Make informed decisions for your retirement. Explore more at SafeMoney.com. As you gear up for crucial retirement decisions such as Social Security, you may have heard of “full retirement age.” The Social Security Administration refers to full retirement age as “normal” retirement age. This is the age at which you will receive 100% of your monthly retirement benefit. But full retirement age isn’t the same for everyone. For those born before 1943, this is age 65. For those born after that year, full retirement age can range from 66 to 67 years old. This matters for eligible recipients because choosing when they begin receiving benefits is one of the most important retirement decisions that they might make. Making the right choice can make a difference of tens, or even hundreds of thousands of dollars , in the lifetime benefits they are paid. You can start taking Social Security benefits once you turn 62, but your benefit will be permanently reduced by 30% or more. You will have to wait until you reach your full retirement age to get your full benefit. And if you delay collecting benefits until after your full retirement age? Then you can increase the amount you receive by about 8% per year until age 70. Waiting to take your benefits at 70 will increase your monthly benefit about one-third more than your regular full benefit. When Does Your Full Retirement Age Kick In? Knowing when you will reach full retirement age is a critical factor in your retirement plan . It can help you to decide when you would like to begin collecting benefits. The Social Security Administration counts your birthday as the day before your actual birthday for the purpose of paying benefits. The full retirement ages for those born in 1943 and after is broken down as follows: The Year You Were Born Your Full Retirement Age 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 after 67 The Month of Your Birthdate Matters for Full Retirement Age The month of your birthdate is important to the Social Security Administration. However, it doesn’t necessarily reflect the dates when you reach your various milestones. Sometimes it’s the month afte