What Is My Full Retirement Age If Born in 1958?

Social Security retirement benefits play a significant role in the financial well-being of many individuals during their later years. Understanding how these benefits are calculated and, more importantly, when one can receive their full entitlement is a crucial aspect of retirement planning. This involves familiarizing oneself with the concept of Full Retirement Age, a benchmark established by the Social Security Administration.

Understanding Full Retirement Age

Full Retirement Age (FRA) represents the age at which an individual becomes eligible to receive 100% of their Primary Insurance Amount (PIA). The PIA is the monthly benefit amount calculated based on an individual’s average indexed monthly earnings over their 35 highest-earning years. FRA serves as a baseline for determining whether benefits will be increased or decreased based on the claiming age.

This specific age is not universal; it varies depending on an individual’s birth year. The Social Security Act was amended in 1983 to gradually increase the FRA for those born after 1937. This adjustment reflects changes in life expectancy and aims to help ensure the long-term solvency of the Social Security system.

Full Retirement Age for Those Born in 1958

For individuals born in 1958, the Full Retirement Age is 66 years and 8 months. This age marks the point at which they can begin receiving their unreduced Social Security retirement benefits. The FRA for those born in 1958 is two months higher than for those born in 1957, which was 66 years and 6 months. This incremental increase continues until the FRA reaches 67 for individuals born in 1960 and later.

Impact of Claiming Age on Social Security Benefits

The age at which an individual chooses to claim Social Security benefits significantly impacts the monthly amount received. Claiming benefits before, at, or after Full Retirement Age each carries distinct financial consequences. These adjustments are permanent and are designed to actuarially balance the total benefits paid over a person’s lifetime.

If benefits are claimed earlier than the Full Retirement Age, the monthly payment will be permanently reduced. For instance, if an individual claims benefits at the earliest possible age of 62, the reduction can be substantial. For the first 36 months benefits are claimed before FRA, the reduction is 5/9 of 1% for each month. If benefits are claimed more than 36 months early, an additional reduction of 5/12 of 1% per month applies for those extra months. For someone with an FRA of 67, claiming at age 62 results in a 30% reduction in their monthly benefit.

Conversely, waiting until Full Retirement Age means receiving 100% of the calculated Primary Insurance Amount. Claiming at FRA provides the standard, unadjusted benefit determined by one’s earnings history.

Delaying the start of Social Security benefits beyond Full Retirement Age can lead to higher monthly payments through Delayed Retirement Credits (DRCs). For each month benefits are delayed past FRA, up to age 70, an individual accrues these credits. For those born in 1943 or later, the annual increase from DRCs is 8%. This translates to an increase of 2/3 of 1% for each month benefits are delayed. These credits stop accumulating once an individual reaches age 70.