What Year Can I Retire If I Was Born in 1958?
For those born in 1958, understand your Social Security retirement age and benefit claiming options.
Social Security provides a foundational layer of retirement income for millions of Americans, designed to offer financial support in later life. The age at which an individual chooses to begin receiving these benefits significantly affects the monthly amount they will receive.
Full Retirement Age for Individuals Born in 1958
For individuals born in 1958, their Full Retirement Age (FRA) is 66 years and 8 months. The Full Retirement Age is the point at which the Social Security Administration (SSA) considers an individual eligible to receive 100% of their Primary Insurance Amount (PIA). The PIA represents the monthly benefit amount calculated based on an individual’s lifetime earnings, adjusted for inflation. Claiming benefits precisely at this age ensures the receipt of the full, unreduced benefit amount that has been earned through years of contributions.
Options for Early Retirement
Individuals born in 1958 have the option to begin receiving Social Security retirement benefits as early as age 62. Choosing to claim benefits at this early age, or at any point before reaching Full Retirement Age, results in a permanent reduction of the monthly benefit amount. For someone born in 1958, claiming benefits at age 62 leads to an approximate 28.3% reduction from their full monthly benefit. This reduction is applied because benefits are received for a longer period.
The reduction is generally permanent for the entire duration benefits are received. For instance, if an individual’s full monthly benefit at FRA was $1,000, claiming at age 62 would reduce it to about $717. This lower amount would then be the baseline for future cost-of-living adjustments. The decision to claim early provides immediate income but comes with a long-term decrease in monthly payments.
Delayed Retirement Credits
Individuals born in 1958 can also choose to delay claiming their Social Security benefits past their Full Retirement Age. Delaying benefits allows them to earn Delayed Retirement Credits (DRCs). For those born in 1943 or later, the annual percentage increase due to DRCs is 8%.
These credits continue to accrue until an individual reaches age 70. There is no additional increase in benefits for delaying beyond age 70. The mechanics of these credits mean that for every year an individual delays claiming past their FRA up to age 70, their monthly benefit will increase by 8%.
How Claiming Age Affects Your Benefit Amount
The Primary Insurance Amount (PIA) serves as the baseline for all adjustments, representing the full benefit at 100%. If benefits are claimed at age 62, an individual born in 1958 will receive approximately 71.7% of their full benefit. This means a substantial decrease in the monthly payment compared to waiting.
Conversely, waiting until Full Retirement Age, which is 66 years and 8 months for this birth year, results in receiving 100% of the calculated benefit. Delaying further, until age 70, can significantly increase the monthly payment. By waiting until age 70, an individual born in 1958 can receive approximately 126.7% of their full benefit. This increase reflects the accumulation of Delayed Retirement Credits. Therefore, the choice of claiming age directly determines the percentage of the full benefit received, ranging from a reduced amount at age 62 to a significantly increased amount at age 70.