What full retirement age means and why it shifted

Full retirement age by birth year

Your full retirement age depends on your birth year. That age matters because it sets the point when you can receive your full Social Security retirement benefit. Claiming before full retirement age generally means receiving a smaller monthly payment. Waiting until after full retirement age can increase your monthly benefit through delayed retirement credits until age 70.

As part of legislation enacted in 1983 to address Social Security's financing, Congress gradually increased full retirement age from 65 to 67. Increasing longevity was also part of the policy rationale for the change. The change was phased in by birth year. Full retirement age increased from 65 to 66 for people born from 1938 through 1943, remained 66 for those born from 1943 through 1954, and then gradually increased again until reaching 67 for people born in 1960 or later. Find your exact full retirement age on the Social Security website.

What “100% of your benefit” means

You can claim your full Social Security retirement benefit when you reach full retirement age. The full benefit is referred to as 100% of your primary insurance amount. That’s the benefit amount Social Security calculates based on your earnings history.

How claiming at age 62, 67, or 70 changes your monthly benefit

It’s important to consider when to start taking Social Security. The age at which you begin taking benefits determines the amount you receive each month for the rest of your life.

For the comparison below, we use age 67 as full retirement age, which applies to people born in 1960 or later. 

What is the difference if you claim Social Security retire at age 62 instead of 67?

If your full retirement age is 67 and you claim benefits at 62, your monthly amount is reduced by about 30%. For people with earlier full retirement ages, the reduction is smaller. The exact reduction depends on your birth year.¹

What happens if you claim at age 65 instead of 67?

If your full retirement age is 67 and you claim at 65, your monthly benefit would be reduced by about 13.33%,² a reduction that is smaller than if you claimed benefits at 62.

How waiting until age 70 can raise the monthly payment

If you wait beyond full retirement age to claim, delayed retirement credits can increase your monthly benefit. For people born in 1943 or later, the delayed retirement credit is generally 8% per year until age 70. After 70, delayed claiming does not cause benefits to grow.

Comparing age 62 vs 67 vs 70 based on trade-offs

There is no single claiming age that fits every household. Claiming at 62, full retirement age, or 70 can make sense in different circumstances. The trade-off is usually between receiving income sooner and receiving a larger monthly payment later.

Break-even thinking: Monthly income vs total lifetime benefits

Break-even thinking compares the income you receive by claiming earlier with the larger monthly payments you may receive by waiting. Claiming early means more checks over time, but each check is smaller. Waiting means fewer checks at first, but each one may be larger. Over a longer retirement, those larger payments may eventually catch up. This is why life expectancy, spending needs, other income sources, and survivor benefits can all matter.

Factors impacting your decision

Social Security timing is one part of a larger retirement income picture. Before deciding when to claim, it helps to look at how your household income, work plans, health, taxes, and family needs may affect the role Social Security plays in your overall retirement plan.

• Cash-flow needs: If Social Security will be an important source of near-term income, claiming earlier may feel more practical. If you have other income sources, you may have more flexibility. A retirement savings calculator may help you evaluate your options.
• Other retirement income: For higher-net-worth households, Social Security may represent a smaller share of total retirement income. Deciding when to claim becomes more about coordinating with pensions, investments, annuities, and required minimum distributions  while considering the potential tax implications
• Work plans: If you claim before full retirement age and continue working, the Social Security Administration’s earnings limit may temporarily reduce your benefit if your income exceeds the annual threshold.
• Taxes: Depending on your total income, a portion of your Social Security benefits may be taxable. A tax professional can help explain how this may apply to your situation.
• Health outlook: Health and longevity expectations can influence how a household thinks about claiming earlier versus later.
• Spousal or survivor benefits: For married couples, the timing decision may affect more than one person. Claiming early can reduce the worker’s monthly benefit, which may also affect survivor benefit calculations. For couples, each spouse's eligibility for retirement and spousal benefits can affect the household's claiming decision. Social Security generally determines benefits under the applicable retirement and spousal-benefit rules, so couples may want to review their individual estimates and eligibility with SSA

Full retirement age is more than a milestone. It’s a useful reference point for understanding how Social Security timing can affect your monthly income. Claiming early, claiming at full retirement age, or waiting until age 70 each comes with trade-offs. The right fit depends on how Social Security works alongside your income needs, work plans, health outlook, taxes, and household goals.

Important Information

This material is general in nature and is being provided for information purposes only and is not intended to offer, provide advice, or make recommendations on the value of any strategy or on the purchase of any product. Neither New York Life nor its affiliates or their financial professionals provide tax advice. Consult your own professionals for advice specific to your circumstances.

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