What Is the Full Retirement Age?

When people talk about retirement—especially in the context of Social Security benefits in the United States—one term appears again and again: full retirement age, often abbreviated as FRA. Understanding what FRA means is essential for anyone planning their financial future, because it directly affects how much money you’ll receive in retirement. Although it sounds like a simple concept, it comes with important nuances and long-term consequences.

This article explains what full retirement age is, why it exists, how it’s calculated, how it affects benefit amounts, and how individuals can make informed decisions about when to retire.

Definition: What Does “Full Retirement Age” Mean?

Full retirement age is the age at which a person becomes eligible to receive their full, unreduced Social Security retirement benefit.

In other words, it's the benchmark age used by the Social Security Administration (SSA) to determine whether your benefits will be:

• Reduced (if you claim early),

• Unchanged (if you claim at full retirement age), or

• Increased (if you delay benefits past your full retirement age).

FRA exists because the Social Security system uses it as a “normal retirement age” to calculate the baseline monthly payment. Choosing when to start benefits—before, at, or after this age—has lifelong financial implications.

Why the Full Retirement Age Isn’t a Single Age for Everyone

Originally, when Social Security began in the 1930s, full retirement age was 65 for everyone. But over time, due mainly to increased life expectancy and concerns about the long-term sustainability of the program, Congress adjusted the rules.

Today, FRA depends on your birth year.

Most Americans alive today fall into one of two general categories:

1. If you were born before 1943: Your FRA is between 65 and 66.

2. If you were born from 1943 to 1954: Your FRA is 66.

3. If you were born from 1955 to 1959: FRA rises gradually from 66 and 2 months to 66 and 10 months.

4. If you were born in 1960 or later: Your FRA is 67.

These incremental adjustments help balance the Social Security system as populations live longer and spend more years drawing benefits.

Why Your Full Retirement Age Matters

Your FRA determines several key aspects of your Social Security benefits.

1. Benefit Amount

Your full benefit—the amount you’re entitled to based on your earnings history—is only paid if you claim benefits exactly at full retirement age. Claiming earlier reduces your monthly check, while delaying benefits increases it.

2. Working While Receiving Benefits

Before reaching FRA, your ability to work and collect Social Security at the same time is limited by an earnings test. If you earn above certain thresholds, part of your benefits may be temporarily withheld. After FRA, these limits disappear, and you can work and earn as much as you like without reducing your Social Security payments.

3. Survivor and Spousal Benefits

FRA also plays a major role in benefits for spouses and survivors:

• Spouses may receive reduced benefits before their own FRA but receive the full spouse benefit only at FRA.

• Survivors, such as widows and widowers, may receive 100% of the deceased spouse’s benefit only if they claim at their survivor FRA.

Understanding the FRA rules in these situations can prevent unintentional and permanent reductions in benefits.

How Claiming Before Full Retirement Age Works

You can claim Social Security as early as age 62, but doing so permanently reduces your monthly benefit. The reduction is based on how many months you claim before your FRA.

How much are benefits reduced?

While the exact percentage varies by FRA, reductions generally follow this pattern:

• The first 36 months early reduce benefits by about 5/9 of 1% per month (~6.7% per year).

• Any additional months beyond 36 reduce benefits by 5/12 of 1% per month (~5% per year).

Claiming at 62 often means a total reduction of 25% to 30%, depending on your FRA.

This reduction is permanent. Even at 70, your benefit will not adjust upward to the full amount.

Why might someone claim early?

Despite the financial downside, many people claim early due to:

• Poor health or reduced life expectancy

• Job loss or inability to work

• Need for income

• Personal preference for early financial freedom

Claiming early isn’t necessarily a bad decision—it just requires careful evaluation of your circumstances.

How Delaying After Full Retirement Age Works

If you wait beyond FRA, your benefit grows thanks to delayed retirement credits. These credits apply from FRA to age 70.

How much does the benefit grow?

Benefits increase by about 8% per year for each year you delay past FRA, up to age 70.

This means delaying from 67 to 70 can increase your monthly benefit by approximately 24%.

Why might someone delay benefits?

People often delay benefits when:

• They expect to live longer than average

• They want to maximize income later in life

• They have sufficient income from other sources

• They are still working and don’t need Social Security yet

• They want to boost survivor benefits for a spouse

For many, delaying benefits can be financially advantageous, especially if they live into their 80s or beyond.

Full Retirement Age and Life Expectancy

Choosing when to claim Social Security is often a trade-off between receiving payments earlier and receiving larger payments later. FRA provides the pivot point in this decision.

A common question arises: “Is it better to take benefits early and receive more checks, or delay and receive larger checks?”

The answer depends largely on:

• Life expectancy

• Health

• Income sources

• Retirement lifestyle plans

For example, if you live a long life, delaying benefits typically results in higher lifetime income. But if you have health issues or immediate financial needs, early claiming may be the logical choice.

Full Retirement Age and Longevity Trends

The FRA increases introduced decades ago reflect demographic realities:

• People are living longer

• Fewer workers support each retiree

• The Social Security trust funds face long-term pressure

Raising the FRA gradually helps reduce the financial burden on the system without immediate or drastic changes for future retirees. Some policymakers have proposed increasing FRA again in the future, though no new laws have been passed at the time of this writing.

Full Retirement Age and Work: Understanding the Earnings Test

If you start drawing Social Security before FRA and continue to work, your benefits may be temporarily reduced.

How the earnings test works:

• Below FRA, if you earn more than an annual limit, part of your benefits will be withheld.

• The year you reach FRA has a higher earnings limit.

• After FRA, no earnings limit applies.

It’s important to note that withheld benefits aren’t “lost”—your monthly payment will be recalculated at FRA to account for the months when you didn’t receive benefits.

Still, this system influences many people’s strategy about when to start drawing benefits if they intend to continue working.

Full Retirement Age for Spousal Benefits

Spousal benefits allow a husband or wife to receive up to 50% of the other spouse’s full retirement benefit.

Key points:

• To receive that full 50%, the spouse must wait until their FRA.

• Claiming early permanently reduces the spousal benefit.

• Spousal benefits do not increase by delaying past FRA.

This rule often surprises people. Delayed credits apply only to your own benefits—not to benefits received as a spouse.

Full Retirement Age for Survivor Benefits

Widows and widowers have slightly different rules for full benefits.

• Survivor benefits can begin at age 60 (or 50 if disabled).

• To receive 100% of the deceased spouse’s benefit, survivors must wait until their survivor full retirement age, which is separate from their retirement FRA.

• Claiming earlier reduces survivor benefits.

Understanding this distinction can help maximize the income available to a surviving spouse.

Planning Strategies Involving Full Retirement Age

Given the impact of FRA on benefit levels, many people use strategies that balance personal finances, taxes, and lifestyle goals.

Here are some common approaches:

1. Claim Early, Invest the Benefits

Some retirees prefer to take benefits early and invest them, hoping returns will outweigh reductions. This strategy requires discipline and involves market risk.

2. Delay to Maximize Lifetime Income

Those with longevity in their family often delay to 70 to secure the highest possible monthly income. This can protect against the financial risk of living a long life.

3. One Spouse Delays, the Other Claims Earlier

This mixed strategy can:

• Provide income sooner

• Maximize survivor benefits later

• Maintain flexibility for the household

It’s especially effective when one spouse has a much higher lifetime earnings record.

Common Misconceptions About Full Retirement Age

Many people misunderstand how Social Security works. Here are some myths and the actual facts:

Myth 1: You must stop working at full retirement age.

Reality: FRA has nothing to do with when you stop working. It only determines benefit calculations.

Myth 2: Social Security ends when you reach a certain age.

Reality: Benefits last for life, regardless of when you claim.

Myth 3: Claiming at FRA yields the most lifetime income.

Reality: The optimal strategy depends on your lifespan. Claiming earlier or delaying might result in higher lifetime income depending on how long you live.

Myth 4: Your FRA increases every year.

Reality: It’s based on your birth year, not the year you retire.

How Social Security Determines Your Full Benefit (Before FRA Adjustments)

Before adjustments for claiming age, the Social Security Administration calculates your full retirement benefit based on:

1. Your 35 highest-earning years, adjusted for inflation

2. A formula that weighs lower earnings more heavily

3. Your FRA (to determine if you’re receiving 100% of benefits)

The benefit produced by this formula is called your Primary Insurance Amount (PIA). Full retirement age determines when you can receive that full PIA.

Why Full Retirement Age Is Just One Piece of the Puzzle

While FRA is crucial, it shouldn’t dominate your entire retirement strategy. Other factors also matter:

• Pensions

• Savings and investments

• Health insurance coverage (especially before Medicare starts at 65)

• Housing and lifestyle choices

• Tax strategies

• Family circumstances

FRA simply tells you when Social Security will provide your baseline benefit—your broader financial situation determines what retirement looks like for you.

Conclusion

Full retirement age is a foundational concept in understanding Social Security. It represents the age at which you’re entitled to your full, unreduced benefit and serves as the central reference point for calculating decreases or increases based on your claiming decision.

While FRA ranges between 66 and 67 for most modern retirees, your choice of when to start benefits remains deeply personal. Claiming earlier provides quicker income but results in lower monthly payments. Delaying beyond FRA increases monthly benefits but requires the financial ability to wait.

Ultimately, the best decision depends on your health, life expectancy, income needs, work situation, and long-term financial goals. Understanding how FRA works is the first step toward making informed, confident decisions about retirement.