What is full retirement age (FRA)?
Full retirement age is the age at which you're entitled to 100% of your Primary Insurance Amount, the baseline Social Security benefit calculated from your earnings history. FRA depends on your birth year and gradually increased for people born from 1943 through 1960, landing at age 67 for anyone born in 1960 or later.
Claiming at your exact full retirement age means you receive your full calculated benefit with no early-claiming reduction and no delayed-retirement increase. Claiming before or after FRA adjusts that amount, sometimes substantially, for the rest of your life (except for annual cost-of-living adjustments).
| Birth year | Full retirement age |
|---|---|
| 1943–1954 | 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 or later | 67 |
How much do I lose by claiming Social Security early at 62?
You can begin claiming Social Security retirement benefits as early as age 62, but doing so results in a permanent reduction to your monthly benefit compared to waiting until full retirement age. The reduction is calculated based on the number of months before FRA that you claim.
The earlier you claim relative to your FRA, the larger the percentage reduction, and this reduction is generally permanent for the rest of your life aside from cost-of-living adjustments applied annually to whatever amount you're receiving.
How much more do I get by delaying Social Security to 70?
If you delay claiming past your full retirement age, you earn delayed retirement credits that increase your monthly benefit for each month you wait, up until age 70, after which there's no further benefit to delaying. This can result in a substantially higher monthly payment than claiming at FRA.
Delayed retirement credits generally accrue at a rate of about two-thirds of one percent per month (roughly 8% per year) between full retirement age and age 70, though this rate has historically varied slightly and should be confirmed for your specific birth year at ssa.gov.
How is this calculated? What formula does the calculator use for claiming-age comparisons?
How is this calculated? Taxcentra's Social Security calculator starts from your estimated Primary Insurance Amount (the benefit you'd receive at full retirement age, which you can find on your Social Security Statement or estimate based on earnings history) and then applies standard early-claiming reduction or delayed-retirement credit adjustments for the age you select.
For claiming before full retirement age, the calculator applies a reduction generally structured as approximately 5/9 of 1% per month for the first 36 months before FRA, and approximately 5/12 of 1% per month for each additional month beyond 36, up to the maximum reduction at age 62. For claiming after full retirement age, it applies delayed retirement credits at approximately 2/3 of 1% per month up to age 70.
This produces an estimated monthly benefit at each claiming age you compare. The calculator does not incorporate spousal or survivor benefit rules, cost-of-living adjustments applied after you claim, work-related earnings test reductions if you claim before FRA while still working, or Social Security taxation of benefits based on other income, all of which can affect your actual payment.
How much is my benefit reduced or increased at different ages?
The table below shows illustrative percentage adjustments to your full retirement age benefit amount, assuming a full retirement age of 67, to demonstrate the general shape of the tradeoff between claiming early and claiming late.
| Claiming age | Approximate % of full (FRA) benefit | General characterization |
|---|---|---|
| 62 | ~70% | Maximum reduction for earliest eligible claiming age |
| 65 | ~86.7% | Reduced benefit, still before FRA |
| 67 (FRA) | 100% | Full Primary Insurance Amount, no adjustment |
| 68 | ~108% | Delayed retirement credit applied |
| 70 | ~124% | Maximum delayed retirement credit, no further increase after 70 |
Is Social Security income taxable?
Yes, depending on your total combined income (which includes adjusted gross income, tax-exempt interest, and half of your Social Security benefits), up to 85% of your Social Security benefits may be subject to federal income tax. Lower-income retirees may owe little or no tax on their benefits.
State taxation of Social Security benefits varies; some states tax benefits, many do not. Because this depends on your full income picture and state of residence, a tax professional can help you understand the after-tax value of your projected benefit.
How does working while claiming Social Security affect my benefit?
If you claim Social Security before reaching full retirement age and continue working, an earnings test may temporarily withhold part of your benefit if your earnings exceed an annual limit set by the Social Security Administration, adjusted for inflation each year. Amounts withheld under this test are not lost forever; your benefit is recalculated upward once you reach FRA to credit back the withheld months.
Once you reach full retirement age, the earnings test no longer applies, and you can earn any amount of income without a reduction to your Social Security benefit.
What factors besides claiming age should I consider?
Beyond the mathematical claiming-age tradeoff, personal factors matter significantly, including your health and family longevity history, whether you need the income immediately, whether you're still working, spousal and survivor benefit considerations for married couples, and how Social Security fits into your broader retirement income plan alongside savings like a 401(k) or IRA.
Because these decisions are often irreversible or costly to change once made, many people benefit from discussing their specific claiming strategy with a licensed financial professional before making a final decision.