Retirement Age is on the Rise

Retirement Age is on the Rise

The age of retirement with full Social Security benefits used to be 65, and early retirement benefits, with a reduction of the full benefit amount, were available at age 62. Currently, the full Social Security benefit retirement age is 66 for people born between 1943 and 1954, and it will gradually rise to 67 for those born in 1960 or later. Early retirement benefits will still be available at age 62, subject to further reductions.

The change in the Social Security retirement age requirements has led to an increase in the number of years that Americans are staying in the workforce. A Gallup poll conducted in 2014 confirmed that the actual average retirement age has been rising over the past decade. In 2002, the average retirement age for U.S. workers was 59. By 2014, the retirement age had increased to 62. The age at which U.S. workers expect to retire has also increased, from age 63 in 2004 to age 66 in 2014.

Screen Shot 2558-04-10 at 1.56.59 PM
The chart below shows the age requirements for receiving full retirement depending on your year of birth. If you would like to see a detailed calculation of the amount by which full retirement benefits are reduced for early retirement at age 62, by year of birth, refer to the SSA’s Retirement Planner web page here.

Age To Receive Full Social Security Benefits

Screen Shot 2558-04-10 at 2.03.33 PM
*If you were born on January 1st of any year refer to the previous year. If you were born on the 1st of the month, SSA calculates your benefit and full retirement age as if your birthday was in the previous month.

Source: SSA