What Is the Full Retirement Age If Born in 1959?

Social Security retirement benefits play an important role in financial planning for many individuals in the United States. Understanding the age at which one becomes eligible for full benefits is a key step in preparing for retirement. The Full Retirement Age (FRA) determines the monthly benefit amount. For individuals born in 1959, specific rules influence when and how they can claim benefits. This article details the Full Retirement Age for this birth year and explores the financial implications of claiming benefits at different times.

Full Retirement Age for Individuals Born in 1959

Full Retirement Age (FRA) is the age when a person receives 100% of their Primary Insurance Amount (PIA). The PIA is the benefit amount calculated based on an individual’s highest 35 years of indexed earnings. Claiming benefits at FRA ensures receipt of this amount, without reduction or increase.

For those born in 1959, the Full Retirement Age is 66 years and 10 months. This age varies by birth year, increasing from 65 for earlier cohorts to 67 for those born in 1960 and later. Reaching this age means the Social Security Administration considers an individual fully eligible for their unadjusted monthly retirement benefit. This age is a reference point for all claiming decisions, as it dictates the baseline benefit.

Claiming Social Security Benefits Early

Individuals can begin receiving Social Security benefits as early as age 62. However, claiming benefits before Full Retirement Age permanently reduces the monthly benefit. This reduction occurs because benefits are received for a longer period.

For someone born in 1959, claiming benefits at age 62 (58 months before their FRA of 66 years and 10 months) leads to a significant reduction. The benefit is reduced by 5/9 of 1% for each month for the first 36 months, and then by 5/12 of 1% for each additional month. This results in an approximate 29.17% reduction in the monthly benefit for those born in 1959 who claim at the earliest age. This diminished amount becomes the permanent monthly benefit, aside from cost-of-living adjustments.

Delaying Social Security Benefits

Delaying Social Security benefits past the Full Retirement Age increases the monthly benefit. This increase is due to “delayed retirement credits.” These credits are added to the monthly benefit for each month an individual postpones claiming, up to age 70.

For those born in 1943 or later, including those born in 1959, delayed retirement credits accumulate at 8% per year, or two-thirds of 1% for each month delayed. For example, if an individual born in 1959 waits until age 70 to claim benefits, they could significantly increase their monthly payment compared to their Full Retirement Age amount. Benefits stop accruing these delayed retirement credits at age 70. There is no further increase for delaying past this age.