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The Social Security retirement age varies based on the year of birth, with the retirement age gradually increasing from 65 to 67 over a period of more than 20 years. People can apply for benefits at age 62, but the amount received will be reduced.
Social Security retirement age is the age at which a person is eligible to receive the full amount of Social Security Administration (SSA) benefits to which they are entitled. Many people think that the retirement age is 65, but that is not always the case. It varies according to the year in which the person was born.
With the creation of the Social Security Act of 1935, the retirement age was set at 65, which is why many people think that 65 is the normal retirement age. Over time, the United States Congress evaluated the average life expectancy of United States citizens and determined that life expectancies were increasing. With this in mind, Congress voted to increase the retirement age used to receive full Social Security benefits.
In 1983, amendments to the Social Security Law stipulated that the retirement age would gradually increase, based on the year the recipient was born. Over a period of more than 20 years, the Social Security retirement age was going to go from 65 to 67, increasing in months instead of years. The retirement age did not increase with each year. Instead, it was stable for 11 years from birth, leaving the retirement age at 66 for anyone born between 1943 and 1954.
The SSA maintains a chart that people can use to determine their retirement age. As indicated in the chart, people born before 1937 are eligible to receive full retirement benefits when they reach age 65. Those who were born in 1938 are eligible when they turn 65 and two months of age, while people who were born in 1939 are eligible when they are 65 and four months of age. There is a two-month delay for each year the increase takes effect until 1943, when the retirement age became 66 for anyone born between 1943 and 1954.
For those born after 1954, the retirement age increased once again in two-month increments. A person born in 1955 would reach Social Security retirement age at 66 and two months, while a person born in 1959 would be eligible at 66 and 10 months. Anyone born in 1960 or a year later would be eligible when they turned 67.
If desired, a person can apply for and receive Social Security retirement benefits at age 62. Since 62 is not the full retirement age, regardless of the year of birth, the person receiving benefits would receive a reduced amount. For example, if someone was born in 1943, their Social Security retirement age would be 66. If you wanted to retire at age 62, your benefits would be reduced by a percentage set by SSA. The reduction would apply for as long as you received benefits, including after you reach normal retirement age.
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