For decades, 65 was considered the traditional retirement age in the United States. However, due to legislative changes passed in 1983, that age has gradually shifted, impacting millions of citizens.
If you were born in 1959, your full retirement age (FRA) is not 67, as many people think, but rather 66 years and 10 months. This adjustment is part of a response to demographic changes, such as longer life expectancies and people remaining active later in life.
What Is the Exact Retirement Age for Those Born in 1959?
The Social Security Administration (SSA) has set the full retirement age for individuals born in 1959 at 66 years and 10 months. This means you will be eligible to claim 100% of your Social Security benefits at that age.
If you decide to begin claiming benefits before then, such as at age 62, the monthly amount will be reduced significantly.
The Impact of Claiming Benefits Early
You can begin claiming your Social Security benefits as early as age 62. However, claiming before reaching your full retirement age results in a permanent reduction in your benefits.
For example, if you retire at age 62, you will only receive 70.8% of your full benefit. This reduction can have a significant impact on your long-term financial planning and how you approach retirement.
The reduction is permanent, meaning you will continue to receive a smaller monthly check for the rest of your life. When making this decision, it’s crucial to consider factors such as your health, income, personal savings, and any family needs that may affect your retirement.
Why Was the Retirement Age Changed?
The gradual increase in the retirement age was part of a reform passed by Congress in 1983 to help ensure the sustainability of the Social Security system. With people living longer and staying active later in life, it became necessary to adjust when people would begin receiving their benefits.
Since then, the FRA has been increasing for each generation. For example, those born between 1943 and 1954 have an FRA of 66, and for those born in 1960 or later, the FRA is 67.
The Benefits of Delaying Your Retirement
While it’s possible to begin claiming benefits at age 62, delaying retirement can result in a higher monthly benefit. If you choose to continue working beyond your full retirement age, your benefits will increase by up to 8% per year until you reach age 70.
For many, delaying retirement can be a smart financial strategy, especially for those in good health or with a strong income from other sources. Waiting to claim Social Security until later allows you to maximize your benefits during retirement, which can provide a better financial cushion in the long term.
Plan Ahead with Clear Information
If you were born in 1959, your full retirement age is 66 years and 10 months, not 67. Understanding this is crucial for making well-informed decisions about your Social Security benefits in 2025 and beyond. Knowing when you can claim your full benefits will help you plan your finances more effectively and avoid surprises down the road.
Always consult official sources, like the Social Security Administration (SSA), to verify your specific situation and make sound decisions that will ensure a stable financial future.
