Factor 2: Your Full Retirement Age (FRA)

Your Full Retirement Age represents the specific age at which you become eligible to receive 100 percent of your calculated benefit, officially known as your Primary Insurance Amount. Historically, FRA was universally set at age 65. However, legislation passed in 1983 gradually increased the FRA to account for longer life expectancies. Today, your FRA is strictly dictated by the year you were born.

• Born between 1943 and 1954: Your FRA is 66.
• Born in 1955: Your FRA is 66 and 2 months.
• Born in 1956: Your FRA is 66 and 4 months.
• Born in 1957: Your FRA is 66 and 6 months.
• Born in 1958: Your FRA is 66 and 8 months.
• Born in 1959: Your FRA is 66 and 10 months.
• Born in 1960 or later: Your FRA is exactly 67.

Knowing your precise FRA is critical because it serves as the anchor point for all other calculations. Every month you claim benefits before your FRA results in a permanent reduction, and every month you delay claiming past your FRA results in a permanent increase. Treating age 65 as your default retirement age will inevitably result in an unexpected reduction in your lifetime income.