Full retirement age (FRA) is the age at which you can claim your standard Social Security benefit, or your primary insurance amount (PIA), from Social Security. Your PIA is the standard corporeality you tin can expect to receive based on your inflation-adapted average wages earned throughout your career. Full retirement age is 66 for those born in 1954 and 67 for those born in 1960 or after -- information technology varies depending on your birth year.

It is important to know your full retirement historic period, equally it affects when you can claim Social Security without reducing your benefits, the amount of delayed retirement credits you can earn in order to raise your benefits, and how much you can earn from working while receiving Social Security without forfeiting any of your benefits.

Social Security total retirement age chart

The chart below shows the total retirement age for people born at different times.

A table of Social Security full retirement age by birth years.

Data source: Social Security Administration. Chart by writer.

How does total retirement age bear upon your Social Security benefits?

If yous claim your benefits at full retirement age, you will receive your standard Social Security benefit corporeality. If yous claim prior to FRA, you will be field of study to early filing penalties that reduce your benefit by the following amounts:

  • 5/nine of 1% for each of the first 36 months before FRA
  • 5/12 of i% for each subsequent month before FRA

This amounts to a vi.vii% annual reduction for each of the first three years and an additional 5% reduction for each following yr before FRA. If you claim benefits at 62 with an FRA of 67, yous will face up a full 30% reduction in benefits.

By dissimilarity, if you lot claim benefits after FRA, you receive delayed retirement credits valued at 2/3 of ane% per month. This results in an 8% annual increment to your monthly benefit. Delayed retirement credits can be earned until age seventy, later on which time there is no financial benefit to delaying your claim. Delayed retirement credits cannot be earned if y'all are claiming either spousal or survivor benefits.

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Working afterward full retirement historic period FAQ

Retirees may work while collecting Social Security benefits, but those younger than their FRA will be subject to the retirement earnings test (RET).

Under this test, if your earnings exceed a certain limit (which changes annually), you will temporarily forfeit some or all of your benefits. In one case you lot reach full retirement age, your benefit is recalculated and yous may receive almost of that money back.

Tin I work later full retirement age?

You can piece of work afterward full retirement age and earn as much as you'd like without the amount of your Social Security benefits beingness affected at all.

How much can I earn if I work after my full retirement age?

If you continue to piece of work later on reaching full retirement age, you may work and earn every bit much as yous'd similar. You volition not be subject to the retirement earnings test, and your Social Security benefits will not be afflicted.

If you piece of work prior to FRA, you may forfeit part of your benefits if you earn above annual thresholds. However, your benefit amount will be recalculated at full retirement age to account for virtually of those forfeited funds.

Does working afterward full retirement age increase Social Security benefits?

Working after full retirement age could increase your Social Security benefits. Your benefits are based on average wages over your 35 highest-earning years (adjusted for inflation).

Even after you've reached full retirement age, and even if you've already claimed benefits, the Social Security Administration continues to recalculate your average annual wage to business relationship for new income. If your earnings after FRA are college than previous years and enhance your average wage for your 35 peak-earning years, your benefits could rise accordingly.

Other primal questions nigh full retirement historic period

There are a few other key things yous may need to know about full retirement age.

Do survivor benefits increase afterward full retirement age?

If you lot are the surviving spouse who is claiming benefits based on your deceased partner's work record, there is no do good to waiting until after FRA to claim your benefits. You practise not earn delayed retirement credits, and so your benefit volition not increase.

Notwithstanding, if you lot are the higher-earning spouse, delaying your claim for benefits until after FRA can consequence in your widow(er) receiving more monthly income, as your widowed partner will receive the higher of the ii monthly benefits you lot were each receiving.

Are Social Security benefits taxable at full retirement age?

Your age does non take an touch on on whether you will owe tax on Social Security benefits. Depending on your earnings, you may pay federal taxes on Social Security benefits regardless of the age at which you claim.

Social Security benefits are taxed on amounts exceeding the "conditional income" limit set past the IRS. To calculate your provisional income, add up all non-Social Security sources of income, including nontaxable income such equally municipal bail interest, and include one-half of your annual Social Security income.

Single filers earning provisional income betwixt $25,000 and $34,000 and married articulation filers earning between $32,000 and $44,000 will owe income taxes on 50% of their Social Security benefits. For single filers with provisional income higher up $34,000 and married filers above $44,000, upward to 85% of Social Security benefits will exist taxable.

Is your full retirement age affected by where you live?

Your FRA is non affected past where you live. Nigh Social Security rules, including those that determine benefit amount and claiming historic period, are gear up past federal law. However, some states do tax Social Security benefits, so where you live can affect tax levels on your retirement income. But again, the age at which y'all merits benefits won't affect your tax rate -- your income is the fundamental factor.

Good Q&A

The Motley Fool touched base of operations with retirement expert Jialu Streeter, Ph.D., a Research Scholar at the Stanford Center on Longevity.

Jialu Streeter, Ph.D., a Research Scholar at the Stanford Center on Longevity. Jialu's research primarily focuses on the economics of aging, retirement security, and financial security and mental wellbeing of older adults.

Jialu Streeter, Ph.D., a Enquiry Scholar at the Stanford Center on Longevity. Jialu'south research primarily focuses on the economic science of aging, retirement security, and financial security and mental wellbeing of older adults.

The Motley Fool: Because of the COVID-19 pandemic, many Americans at present fear they won't exist able to retire. What is your advice for someone who may exist worried about retiring because of recent financial setbacks?

Streeter: First, I would suggest the person and their family have a thorough review of all their avails and debt, including domicile equity, mortgages, student loans (including their children's if they have co-signed), retirement plan balances, and other checking and savings accounts. Second, it's of import to understand the implications of retirement historic period on the Social Security benefits. For some people who are in good health and can afford to delay Social Security, it might be better for them to delay in order to receive higher benefits for the rest of their lives. Third, the person or family unit demand to have an honest conversation nearly their envisioned retirement style. E.one thousand., will they travel much? Volition they dine out or melt at home? Lastly, the longevity risk. Whether they volition outlive their wealth. People need to put all these points together in order to run across whether they are on runway of a retirement life that they had planned for.