What Full Retirement Age Really Means

For people born in 1960 or later, Social Security's full retirement age is now 67, not 65, which surprises many Americans turning 65 in 2025 and beyond.

Full retirement age is the point at which you receive 100 percent of the monthly benefit you have earned based on your lifetime earnings record, before any early-claiming reductions or delayed retirement credits.

You can still start Social Security as early as age 62, but you will receive a permanently smaller monthly benefit if you claim before reaching age 67.

On the other hand, if you wait past 67 to claim, up to age 70, you can receive delayed retirement credits that permanently boost your monthly check above your full retirement age amount.

How Much You Lose by Claiming at 62

If your full retirement age is 67 and you claim your own worker benefit at 62, Social Security reduces your monthly check to about 70 percent of the amount you would receive at 67.

For example, if your full retirement age benefit would be 2,000 dollars per month at 67, claiming at 62 would reduce it to roughly 1,400 dollars per month — a 600 dollar monthly difference that lasts for life.

The reduction is applied month by month, so claiming at 63, 64, or 65 leads to a smaller cut than claiming right at 62, but you will still receive less than your full retirement age benefit.

Spousal benefits are also reduced when claimed early, with a spouse who claims at 62 receiving about 32.5 percent of the worker's full retirement age benefit instead of the maximum 50 percent available at full retirement age.

Key insight: Claiming at 62 instead of 67 can permanently reduce your Social Security income by hundreds of dollars per month — one of the largest financial decisions of your 60s.

What You Gain by Delaying Past 67

If you wait beyond full retirement age to claim your own worker benefit, Social Security adds delayed retirement credits of about 8 percent per year up to age 70.

That means a worker with a 2,000 dollar full retirement age benefit who waits until 70 could see their monthly benefit rise to roughly 2,480 dollars — about 24 percent more than at 67.

Once you pass age 70, there is no further increase for waiting, so it rarely makes sense to delay claiming beyond your 70th birthday.

Delaying also benefits married couples, because a higher worker benefit becomes the survivor benefit if one spouse dies first, protecting the surviving spouse for the rest of their life.

Coordinating Full Retirement Age with Medicare and Work

Even though full retirement age for Social Security is 67, Medicare eligibility still begins at 65, so pay careful attention to enrolling in Medicare on time regardless of when you claim Social Security.

Many people choose to enroll in Medicare at 65 but delay Social Security until 67 or later, paying the 185 dollar monthly Part B premium directly until Social Security begins and the deduction becomes automatic.

If you continue working past 62 or even past 67, your wages can still increase your Social Security record, and in some cases your benefit can be recalculated upward if you have higher-earning years late in your career.

However, if you claim before full retirement age and continue working, the earnings test may temporarily withhold some benefits if your wages exceed the annual limit, though withheld amounts can later increase your benefit after you reach full retirement age.

Practical Steps to Decide When to Claim

Start by estimating your full retirement age benefit using the Social Security Administration's free Retirement Estimator at SSA.gov, focusing on the amount at 67 for those born in 1960 or later.

Then compare what your budget would look like if you claimed at 62, 67, and 70, taking into account any pensions, savings withdrawals, or part-time work you expect during those years.

Consider your health, family longevity, and whether a surviving spouse will rely heavily on your benefit, because these factors can make delaying more or less valuable for your household.

Remember that you do not have to make this decision alone — counselors at your local State Health Insurance Assistance Program and Social Security field offices can walk you through the numbers before you file.

Related reading: 2025 COLA increase · coordinate with RMDs