Jialu Streeter, Ph.D., researcher at the Stanford Center on Longevity. Jialu`s research focuses on the economics of aging, old age security, financial security, and the psychological well-being of older adults. Full retirement age (FRA), also known as normal retirement age, is the age at which you can receive full Social Security retirement benefits. The age of full retirement varies depending on the year of birth. FRA is 66 years and two months for people born in 1955 and gradually increases to 67 months for people born in 1960 or later. The Motley Fool hit the ground with retirement expert Jialu Streeter, Ph.D., a researcher at the Stanford Center on Longevity. The first time a person can receive Social Security retirement benefits remains age 62. Retirees can work while receiving Social Security benefits, but those who are younger than their FRA are subject to the Pension Income Test (RET). You can work past full retirement age and earn as much as you want without affecting the amount of your Social Security benefits.
Many of the countries listed in the table below are in the process of reforming the era (see the notes in the table for details). The age in the table indicates when a person retires if they retire in the year indicated in the table; In some countries, the trend is that the age will gradually increase in the future (where appropriate, explanations are given in the section on grades), so that the year of birth determines when one reaches retirement age (e.g. in Romania, women born in January 1955 reached retirement age at 60 in January 2015; those born in January 1958 had a retirement age of 61 years in January 2019; those born in January 1961 will retire in January 2023 at age 62; those born in January 1967 will retire in January 2030 at age 63). [4] You can choose to receive Social Security benefits from age 62, but applying for benefits earlier than your FRA will permanently reduce your benefit. For example, if your FRA is 67 and you start claiming benefits at age 62, benefits drop to 70% of what you would have received at full retirement age. You will receive 86.7% of the full old-age pension if you start applying at the age of 65. The Social Security retirement age with full benefit is gradually increasing as a result of legislation passed by Congress in 1983. Traditionally, the age of full benefit was 65 and early retirement benefits were first available at age 62, with a permanent reduction to 80% of the total benefit amount. Currently, the age of full benefit is 66 years and 2 months for persons born in 1955 and will gradually increase to 67 years for persons born in 1960 or later. Early retirement benefits will continue to be available at age 62, but will be further reduced. When the age of full benefit reaches 67, benefits received at age 62 are reduced to 70% of the full benefit and benefits used for the first time at age 65 to 86.7% of full benefit.
It`s important to know your full retirement age because it affects when you can apply for Social Security without reducing your benefits, how much delayed retirement credits you can earn to increase your benefits, and how much you can earn while working and receiving Social Security without losing your benefits. The average retirement age for Americans has increased by about three years over the past three decades, according to Boston College`s Center for Retirement Research. Despite this, Americans, on average, retire before reaching full retirement age. Men retire with an average age of 64.6. The average retirement age for women is 62.3 years. If you were born in 1955, the full retirement age is 66 years and two months. The FRA gradually increases to age 67 if you were born in 1960 or later. This article lists the legal retirement age in different countries.
In some contexts, retirement age is the age at which a person is expected or has to leave employment, and is usually the age at which they may be entitled to an old-age pension or other state benefits such as a state pension. Policymakers generally take into account demographics, the budgetary costs of population ageing, health, life expectancy, nature of occupation, labour supply, etc. when setting the retirement age. [1] Longer life expectancy is used in some countries as an argument for raising the retirement age in the 21st century. [2] [3] You can receive Social Security benefits as early as age 62. However, this permanently reduces your benefits to 70% of what you would receive at full retirement age. Working past full retirement age could increase your Social Security benefits. Your benefits are based on the average salary of your highest 35 years of earnings (adjusted for inflation). Men retire later than women or at the same time.
This issue is being addressed in some countries where the retirement age is aligned. To determine your full retirement age, use the Social Security Administration`s (SSA) online calculator. On the other hand, if you apply for FRA benefits, you will receive late retirement credits worth 2/3 of 1% per month. This results in an 8% annual increase in your monthly benefit. Deferred retirement credits can be accumulated until age 70, after which there is no financial benefit to delaying your application. Late retirement credits cannot be accumulated if you are applying for spousal or survivor benefits. In this test, if your income exceeds a certain limit (which changes each year), you temporarily lose some or all of your benefits. Once you reach full retirement age, your benefit will be recalculated and you will be able to get most of that money back. The average statutory retirement age in the 34 Organisation for Economic Co-operation and Development (OECD) countries in 2014 was 65 for men and 63.5 for women, but the global trend is to raise the retirement age. [73] This is also reflected in the results that just over half of Asian investors surveyed in the region said they agreed with raising the retirement age, while a quarter disagreed and the rest were undecided.
[74] Full retirement age (FRA) is the age at which you are entitled to 100% of your Social Security benefits, which are determined by your lifetime income. It increases gradually, from 66 and 2 months for people born in 1955 to 66 months and from 4 months for people born in 1956 to 67 months for people born in 1960 or later. Other factors, such as how much you`ve contributed to the system over the years, affect the amount of Social Security income you receive when you start applying for retirement benefits.
