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Social Security Planning - Full Retirement Age

Once you earn the required work credits, the age at which you become eligible to receive retirement benefits without any reductions is called your Full Retirement Age (FRA). The FRA for anyone born from 1943 through 1954 is 66 years old. The FRA gradually increases to age 67 for those born between 1955 and 1960. Claiming Social Security benefits before full retirement age or early filing may permanently reduce retirement benefits.

For example, if your full retirement age is 67 and you claim benefits at 62, those benefits will be reduced by 30% for the rest of your life (see chart below) – that can be a lot of money over a lifetime. However, if you are willing to postpone claiming your benefits, you will be compensated for your patience. Every month you wait to collect Social Security beyond your full retirement age, you earn delayed-retirement credits worth 0.66% monthly or 8% per year — up to age 70. The delayed payout could be even more due to possible annual cost-of-living adjustments. The survivor benefit available to your spouse during your passing also increases by waiting to receive your benefits. Your surviving spouse will either be eligible for their retirement benefit or the survivor benefit, whichever is larger.

 The difference between claiming 70% of your benefits at the earliest age of 62 and waiting until 70 to collect the maximum benefit amount, translates into a 76% increase in monthly Social Security income for the rest of your life - It is worth considering.



At Carr Wealth Management, LLC, anyone who sets goals for themselves qualifies to be a client. Whether you need help creating a comprehensive financial plan or need advice on individual matters, we can help.  Choosing the best strategy for maximizing social security benefits is essential to planning for your future. Please contact us by email or phone us at (925) 484-1671 to schedule a no-charge consultation or if you have a question about Social Security Benefits. 

Click Here for Main Social Security page.

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