When Is Full Retirement Age for Someone Born in 1957?
Gain clarity on your Full Retirement Age and how Social Security claiming decisions influence your retirement income.
Understanding your Full Retirement Age (FRA) is a central concept in retirement planning. It directly influences the amount of Social Security benefits you are eligible to receive. Knowing your FRA helps you make informed decisions about when to claim benefits to align with your financial goals.
Understanding Full Retirement Age
Full Retirement Age (FRA) is the age when an individual becomes eligible to receive 100% of their Primary Insurance Amount (PIA) from Social Security. The PIA is the benefit amount a person would receive if they start benefits at their FRA. This age varies depending on the year an individual was born.
The Social Security Administration established a graduated scale for FRA, a change implemented to ensure the program’s long-term sustainability. For those born in 1937 or earlier, FRA was 65. For subsequent birth years, FRA gradually increases in two-month increments until it reaches 67 for individuals born in 1960 or later.
Full Retirement Age for Those Born in 1957
For individuals born in 1957, the Full Retirement Age is 66 years and 6 months. This means someone born in 1957 will qualify for their full, unreduced Social Security retirement benefits once they reach this age. Claiming benefits at this age ensures the individual receives their full Primary Insurance Amount.
Reaching Full Retirement Age marks the point at which your earned benefits are paid out in their entirety. For this birth cohort, waiting until 66 years and 6 months allows them to avoid any permanent reduction to their monthly Social Security payment. This age serves as a crucial benchmark for financial planning.
Claiming Social Security Benefits Before Full Retirement Age
Individuals can begin receiving Social Security retirement benefits as early as age 62. However, claiming benefits before reaching Full Retirement Age results in a permanent reduction of the monthly payment. This reduction is applied because benefits are received over a longer period.
The reduction percentage depends on how many months prior to FRA benefits are claimed. For someone born in 1957 with an FRA of 66 years and 6 months, claiming at age 62 would result in a substantial permanent reduction, potentially up to 27.5% to 30% of their full benefit.
Consider the Social Security earnings limit if working while claiming benefits before FRA. For those below FRA, $1 in benefits will be deducted for every $2 earned above an annual earnings limit. In the year an individual reaches their FRA, the reduction temporarily changes to $1 in benefits for every $3 earned above a higher limit, but only until the month they reach their FRA. Once FRA is reached, the earnings test no longer applies.
Claiming Social Security Benefits After Full Retirement Age
Delaying Social Security benefits beyond Full Retirement Age can lead to a larger monthly payment. This increase occurs through Delayed Retirement Credits (DRCs), which are added to an individual’s benefit amount for each month they postpone claiming, up until age 70.
For individuals born in 1943 or later, Delayed Retirement Credits increase the monthly benefit by two-thirds of one percent for each month of delay, which equates to an 8% increase per full year. By waiting until age 70, a person can significantly increase their monthly Social Security payment compared to what they would receive at their FRA. Benefits stop accruing these credits once an individual reaches age 70, making it the latest age at which it is beneficial to delay claiming.
Accessing Your Personalized Social Security Information
Individuals can access their personalized Social Security information through a “my Social Security” online account. Creating this free and secure account allows users to view their earnings record, which details their work history and the wages reported to the Social Security Administration. It is important to regularly review this record for accuracy, as benefits are calculated based on lifetime earnings.
The online account also provides estimated future benefits at various claiming ages, including predictions for starting benefits at age 62, at Full Retirement Age, and at age 70. Users can also view and download their Social Security Statement, which summarizes this information and includes estimates for disability and survivor benefits.