What Age Do You Retire in California?
Learn about the diverse retirement ages for Californians and how different factors shape your eligibility and benefits.
Retirement age is a significant consideration for individuals planning their financial future, and it is a topic with various factors that influence when one can begin receiving benefits. There is no single, universal retirement age that applies to every person in California. Instead, the age at which retirement benefits can be accessed is determined by a combination of federal programs and specific public sector retirement systems.
Federal Retirement Milestones
Federal programs establish foundational retirement ages that apply across the United States, including California. A primary example is Social Security, which defines a Full Retirement Age (FRA) as the point at which an individual can receive 100% of their primary insurance amount, based on their earnings history. This specific age is not uniform for everyone and depends on the individual’s birth year. For those born in 1960 or later, the Full Retirement Age is 67.
Individuals born between 1943 and 1959 have a Full Retirement Age that falls between 66 and 67, increasing by a few months for each subsequent birth year within that range. For instance, someone born in 1959 has an FRA of 66 years and 10 months. This tiered approach was implemented through the 1983 Social Security Amendments to adjust for changing demographics and life expectancies.
Another federal program with a defined age for eligibility is Medicare, which provides health insurance. For most individuals, Medicare eligibility begins at age 65. Enrollment in Medicare can occur as early as three months before the 65th birthday, with coverage typically starting on the first day of the month the individual turns 65.
California Public Sector Retirement Ages
Beyond federal programs, many public sector employees in California are part of distinct retirement systems that have their own age requirements. These systems operate independently from Social Security and Medicare, offering different benefit structures and eligibility criteria. Two prominent examples include the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS).
For most CalPERS members, the earliest age for retirement is 50, provided they meet service credit requirements. For individuals who became CalPERS members on or after January 1, 2013, the minimum retirement age shifts to 52. Specific age and service credit requirements can vary based on job classification, such as public safety roles, and the particular plan formula.
Similarly, CalSTRS, serving public school educators, establishes its own retirement age guidelines. Some CalSTRS members may be eligible to retire at age 55 with at least five years of service credit. Another pathway for certain CalSTRS members allows retirement at age 50, but this requires 30 years of service credit.
How Retirement Age Affects Benefits
The age at which an individual chooses to begin receiving Social Security benefits directly impacts the amount of the monthly payment. Claiming benefits earlier than one’s Full Retirement Age (FRA) results in a permanent reduction of the monthly amount. For example, if an individual claims benefits at age 62 with an FRA of 67, their monthly payment can be reduced by as much as 30%.
Conversely, delaying the start of Social Security benefits beyond the Full Retirement Age can lead to a larger monthly payment. For each month benefits are delayed past the FRA, up to age 70, individuals earn delayed retirement credits. These credits result in an increase of about 8% per year. This means that waiting until age 70 to claim benefits can significantly boost the monthly payout compared to claiming at FRA.
Similar concepts of benefit adjustment based on retirement age exist within other pension plans, including those in the public sector. Generally, retiring earlier than the standard age for a particular pension plan can lead to a reduced benefit, while delaying retirement may result in a higher payout, up to a certain maximum age. These adjustments are designed to account for the longer or shorter period over which benefits are expected to be paid.