| Retirement before "Normal Retirement Age" (NRA)
reduces benefits, and retirement after NRA increases benefits.
NRA is also referred to as "Full Retirement Age." |
The normal retirement age (NRA) is the
age at which retirement benefits (before rounding) are equal to the
"primary insurance amount."
Table 1 shows how NRA varies by year of birth for retirees.
(For benefit computation purposes, widows and widowers whose entitlement is based
on having attained age 60 should add 2 years to the year of birth shown in the table.)
Benefits can be significantly higher or lower than the primary
insurance amount, depending on age at retirement. With
delayed retirement credits, a person can receive his or
her largest benefit by retiring at age 70. A worker can choose to retire
as early as age 62. If such early retirement is chosen, we will reduce
the worker's benefit by a certain percentage.
|
| Normal Retirement Age
varies from age 65 to age 67 by year of birth |
Table 1--Normal Retirement Age
| Year of birth |
Normal
retirement age |
|---|
| 1937 and prior |
65 |
| 1938 |
65 and 2 months |
| 1939 |
65 and 4 months |
| 1940 |
65 and 6 months |
| 1941 |
65 and 8 months |
| 1942 |
65 and 10 months |
| 1943-54 |
66 |
| 1955 |
66 and 2 months |
| 1956 |
66 and 4 months |
| 1957 |
66 and 6 months |
| 1958 |
66 and 8 months |
| 1959 |
66 and 10 months |
| 1960 and later |
67 |
| Note: Persons born on January 1 of any year
should refer to the normal retirement age for the previous year. |
|
| Early retirement reduces benefits |
In the case of early retirement,
a benefit is reduced 5/9 of one percent for each month before NRA,
up to 36 months. If the number of months exceeds 36, then the benefit is
further reduced 5/12 of one percent per month.
For example, if your NRA is exactly age 66 and if you retire at exactly
age 62, there are a total of 48 months of reduction. The reduction
for the first 36 months is 5/9 of 36 percent, or 20 percent. The reduction
for the remaining 12 months is 5/12 of 12 percent, or 5 percent.
Thus, in this example, the total benefit reduction is 25 percent. |
| Delayed retirement increases benefits |
Delayed retirement
credit is generally given for retirement after the normal retirement age.
To receive full credit, you must be insured at your
normal retirement age. No credit is given after age 69.
Delayed retirement credits increase a retiree's benefits.
Table 2 shows the delayed retirement credit by year of birth.
For example, if you were born in 1944 and you intend to retire at age 68, you
first find that your NRA is 66 in the table 1, above.
From table 2, you see that your credit is 8 percent per year.
The difference between your retirement age and NRA is 2 years, so your
benefit would be 8 percent times 2, or 16 percent, higher than your
primary insurance amount. |
| Annual delayed retirement credit percentage
varies from 3% to 8% by year of birth |
Table 2--Delayed retirement credit
| Year of birth |
Credit per year |
|---|
| 1924 | 3.0% |
| 1925-26 | 3.5% |
| 1927-28 | 4.0% |
| 1929-30 | 4.5% |
| 1931-32 | 5.0% |
| 1933-34 | 5.5% |
| 1935-36 | 6.0% |
| 1937-38 | 6.5% |
| 1939-40 | 7.0% |
| 1941-42 | 7.5% |
| 1943 and later | 8.0% |
| Note:
Persons born on January 1 of any year should refer to the credit percentage
for the previous year. |
|
| More information |
A table illustrates the complex
interaction among normal retirement age,
actuarial reduction, and delayed retirement credit. |
|
|
|
www.socialsecurity.gov
