Full Retirement Age by Birth Year
Your full retirement age (FRA) determines the baseline for every benefit calculation. Claim before FRA and your check shrinks permanently. Claim after and it grows by 8% per year until age 70. Congress set these thresholds in 1983 and they haven't changed since.
| Birth Year | Full Retirement Age | Reduction at 62 | Increase at 70 |
|---|---|---|---|
| 1937 or earlier | 65 | 20.0% | +40.0% |
| 1938–1942 | 65 and 2–10 months | 20.8–22.5% | +33.3–38.7% |
| 1943–1954 | 66 | 25.0% | +32.0% |
| 1955–1959 | 66 and 2–10 months | 25.8–29.2% | +25.3–30.7% |
| 1960 or later | 67 | 30.0% | +24.0% |
Source: Social Security Administration. Reduction percentages apply to retirement benefits claimed at age 62. Increase percentages reflect delayed retirement credits earned from FRA through age 70.
How Benefits Are Calculated: AIME and PIA
Social Security uses your highest 35 years of earnings to compute your Average Indexed Monthly Earnings (AIME). If you worked fewer than 35 years, zeros fill in the gaps—each missing year drags your average down. Your earnings are indexed to account for wage growth, so a dollar earned in 1995 is adjusted upward to reflect today's wages.
The Primary Insurance Amount (PIA) is your benefit at full retirement age. SSA applies a progressive formula with three “bend points” (updated annually). For 2025, the formula is:
- 90% of the first $1,174 of AIME
- 32% of AIME between $1,174 and $7,078
- 15% of AIME above $7,078
This progressive structure means lower earners replace a higher percentage of their pre-retirement income. Someone with a $3,000 AIME gets about $1,641/month at FRA (55% replacement). Someone with a $10,000 AIME gets about $3,473/month (35% replacement). The formula intentionally favors workers who earned less over their careers.
Early vs. Delayed Claiming: Ages 62 Through 70
Claiming early means smaller checks for more years. Claiming late means larger checks for fewer years. The SSA reduces benefits by 5/9 of 1% per month for the first 36 months before FRA and 5/12 of 1% for each additional month. After FRA, delayed retirement credits add 8% per year (2/3 of 1% per month) up to age 70.
| Claiming Age | % of FRA Benefit | Monthly on $2,000 PIA | Annual | Lifetime to 85 |
|---|---|---|---|---|
| 62 | 70.0% | $1,400 | $16,800 | $386,400 |
| 63 | 75.0% | $1,500 | $18,000 | $396,000 |
| 64 | 80.0% | $1,600 | $19,200 | $403,200 |
| 65 | 86.7% | $1,734 | $20,808 | $416,160 |
| 66 | 93.3% | $1,866 | $22,392 | $425,448 |
| 67 (FRA) | 100.0% | $2,000 | $24,000 | $432,000 |
| 68 | 108.0% | $2,160 | $25,920 | $440,640 |
| 69 | 116.0% | $2,320 | $27,840 | $445,440 |
| 70 | 124.0% | $2,480 | $29,760 | $446,400 |
Based on FRA of 67 (born 1960 or later) with a $2,000 PIA. Percentages are approximate—exact reductions depend on the number of months before or after FRA. Lifetime totals assume living to age 85 with no cost-of-living adjustments.
Break-Even Analysis: When Waiting Pays Off
The break-even age is when total cumulative benefits from a later claiming strategy overtake an earlier one. If you claim at 62 instead of 67, you collect checks for five extra years—but each check is 30% smaller. Around age 78–80, the person who waited to 67 has collected more in total. Wait until 70 instead of 67, and the break-even point is roughly age 82–83.
If you expect to live well past 85, delaying is almost always the better financial move. If you have health concerns that suggest a shorter lifespan, claiming early locks in more total dollars. There's no universally “right” answer—it depends on your health, other income sources, and whether you need the money immediately.
One often-overlooked factor: Social Security benefits receive annual cost-of-living adjustments (COLAs). A higher base benefit means each COLA increase is worth more in absolute dollars. Delaying from 67 to 70 doesn't just give you 24% more—it gives you 24% more compounding upward with every future COLA.
To see how Social Security fits into your full retirement picture, run the numbers with the retirement calculator. For understanding how your benefits will be taxed, check the income tax calculator.