When Can I Retire If I Was Born in 1959?

Social Security retirement benefits provide a financial foundation for many individuals as they transition from their working years. For those born in 1959, understanding the specific rules and options for claiming these benefits is important for effective financial planning. This article clarifies the relevant ages and considerations for maximizing Social Security benefits for this birth year.

Your Full Retirement Age

For individuals born in 1959, their Full Retirement Age (FRA) for Social Security purposes is 66 years and 10 months. This age represents the point at which you are eligible to receive 100% of your Primary Insurance Amount (PIA), which is the basic benefit calculated based on your earnings history. The Full Retirement Age has gradually increased from 65 due to legislative changes, aiming to reflect longer life expectancies. Consequently, the specific FRA varies depending on an individual’s birth year.

Considering Early Retirement

Individuals born in 1959 have the option to begin receiving Social Security retirement benefits as early as age 62. However, electing to claim benefits before reaching your Full Retirement Age results in a permanent reduction of your monthly benefit amount. This reduction is a trade-off for receiving benefits over a longer period.

For someone born in 1959, claiming benefits at age 62 would result in an approximate 29.17% reduction from their Full Retirement Age benefit. The reduction rate is 5/9 of 1% for each of the first 36 months before FRA, and 5/12 of 1% for each additional month. This permanent reduction not only impacts your own monthly payment but can also affect potential spousal or survivor benefits based on your earnings record.

Maximizing Benefits by Delaying Retirement

Delaying the start of Social Security benefits past your Full Retirement Age can significantly increase your monthly payment through Delayed Retirement Credits (DRCs). These credits are applied for each month you postpone claiming benefits beyond your FRA.

For those born in 1943 or later, Delayed Retirement Credits increase your benefit by 8% for each full year you delay. This accrual continues until you reach age 70. For example, delaying from your FRA of 66 and 10 months until age 70 would result in a substantially higher monthly payout.

Applying for Social Security Retirement Benefits

When preparing to apply for Social Security retirement benefits, gathering specific information and documents is a necessary first step. These include:
Your Social Security card or a record of your number
Your original birth certificate or a copy certified by the issuing agency
Proof of U.S. citizenship or lawful alien status if you were not born in the United States
Your W-2 forms or self-employment tax returns for the past two years
Your bank’s routing number and your account number for direct deposit
Information regarding current and any former spouses, including their Social Security numbers and dates of marriage or divorce

The Social Security Administration offers several convenient methods for submitting your application. The most common and often easiest way is to apply online through the official Social Security Administration website, which allows you to create or log into your personal “my Social Security” account. Alternatively, you can apply by phone using the national toll-free number, 1-800-772-1213.

For those who prefer in-person assistance, you can visit a local Social Security office, though it is advisable to call ahead to schedule an appointment. After submitting your application, you typically receive a letter within 30 days informing you of the decision or requesting additional information. You can still apply even if you do not have all required documents immediately, as the SSA can assist in obtaining missing items.