A growing number of Americans are reaching retirement age each year, with a record-breaking wave turning 65 annually through 2027. However, this milestone is not yet sufficient to claim full Social Security benefits. Since 1983, the full retirement age (FRA) has been gradually increasing, and as of 2025, it is officially set at 67 for those born in 1960 or later.
When Can Social Security Benefits Begin?
Eligible individuals can start receiving reduced Social Security benefits at age 62. However, delaying collection until full retirement age allows beneficiaries to receive 100% of their entitled benefits. The later someone claims their benefits—up to age 70—the larger their monthly payments will be.
Ben Rizzuto, a wealth strategist at Janus Henderson Investors, explains that waiting until FRA not only maximizes personal benefits but can also increase spousal and survivor benefits.
Full Retirement Age by Birth Year
The full retirement age varies depending on birth year:
- 1943-1954: 66 years
- 1955: 66 years and two months
- 1956: 66 years and four months
- 1957: 66 years and six months
- 1958: 66 years and eight months
- 1959: 66 years and ten months
- 1960 or later: 67 years
Individuals born on January 1 of any year are considered to have the FRA of the previous year. The Social Security Administration (SSA) provides a tool to determine eligibility based on birthdate.
Claiming Social Security Before Full Retirement Age
While early Social Security benefits can be claimed at age 62, they come with a permanent reduction. The amount is adjusted based on the number of months before FRA that benefits are collected.
For instance, someone who turns 62 in 2025 would receive about 30% less than if they waited until age 67. Some financial analysts, including Dave Ramsey, suggest investing the reduced benefit in the stock market as a potential strategy to offset losses.
For individuals retiring early due to health issues, Social Security disability benefits may be a viable alternative. These benefits are equal to full, unreduced retirement benefits and automatically convert to regular Social Security payments upon reaching FRA.
The Impact of Delaying Social Security
Delaying Social Security beyond FRA increases benefits by 8% per year, up to age 70. This can lead to a significantly higher monthly payment, benefiting long-term financial security.
Additionally, working past full retirement age may further increase Social Security benefits by raising a retiree’s average lifetime earnings. Since SSA calculates benefits based on a worker’s highest-earning years, continued employment can result in a higher monthly payment.
When Do Most Americans Claim Social Security?
Despite the financial advantages of waiting, most Americans begin claiming Social Security before reaching full retirement age. A 2024 Employee Benefit Research Institute survey found:
- The median retirement age is 62, although many intend to retire at 65 or later.
- The median age for collecting Social Security is 64.
- 35% of retirees leave the workforce earlier than expected due to health issues or disabilities.
- 31% retire due to workplace changes, while 35% retire because they are financially prepared.
As of January 2025, the average Social Security benefit is $1,976 per month, according to the Social Security Administration. This is a significant increase compared to 1975, when the average benefit was $207.
