(NEXSTAR) — You can, technically, retire whenever you like, but the age at which you do it can have a big impact on collecting Social Security benefits.
Retirement benefits from the Social Security Administration can’t be claimed until you turn 62. Payments will not, however, be the full amount you’re entitled to. The Social Security Administration says that payouts for those who start collecting benefits at 62, years ahead of their “full retirement age,” could be reduced by 30% (or 35%, if you’re receiving a spouse’s benefit).
If you wait until you reach full retirement age, or FRA, your monthly benefits cannot be permanently reduced, according to the SSA. Waiting longer, up until you turn 70, can increase the payment size.
Your FRA depends on when you were born. Over the last few years, the FRA has been gradually rising as part of a 1983 amendment for Social Security.
For those born between 1943 and 1954, the FRA is 66, according to the SSA. If you fall in this age group, you’ve been able to collect full retirement benefits since between 2009 and 2020, depending on when you turned 66.
Since 2021, the FRA has been increasing by two months annually. Next year, the final shift will happen, making the retirement age for those born in 1960 and later 67. That means if you were born in 1960, you won’t reach FRA until 2027.
You can see the full breakdown from the SSA below:
| Birth year | Full retirement age |
|---|---|
| 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 later | 67 |
The SSA offers a calculator to determine when you will reach your FRA.
How much your payments are reduced, should you collect retirement benefits early, is also influenced by when you were born. If you were born in 1960 or later, the SSA estimates a $1,000 retirement benefit could be cut to $700 if you claim at age 62.
Next year, the maximum Social Security benefit will jump to $4,152, up from $4,018 this year. A Social Security COLA increase and adjustments that will allow you to save more for retirement in 401(k) and IRA accounts will also take effect in 2026.