Millions of people are realising that retiring might not happen when they were thinking. The Social Security rules establish the age people can receive the full retirement benefits, and knowing these rules help you better plan your retirement. So, if you were already thinking about the perfect time to retire, maybe you will have to change your mind. Let’s see what Social Security says.
Full retirement age
Your full retirement age is the age when you can receive 100% of your Social Security benefits. This age depends on your birth date:
- Born in 1959 → Full retirement age is 66 years and 10 months.
- Born in 1960 or later → Full retirement age is 67.
You can start claiming benefits as early as 62, but your monthly payments will be smaller than the full amount. This isn’t a new rule—it was set by Congress in 1983, gradually raising the retirement age from 65 to 67 over decades. For people born in 1960 or later, this change is now fully in effect.
When to retire?
You have different options when retiring: you either claim the benefits early at 62 years old, or wait after your full retirement age. So:
- Claiming at 62: Your benefits are permanently reduced. For example: for those born in 1959 the reduction is 29.17%, and for those born in 1960 or later the reduction is 30%.
- Waiting until after full retirement age: Your benefits increase. For people born in 1943 or later, the increase is 8% per year, up to age 70. For example, if your full retirement age is 67, claiming at 70 gives 124% of your normal monthly benefit.
In simple terms, the age you choose to retire changes how much money you get every month. Retiring earlier means smaller payments, while retiring later means larger ones, so it’s important to think about your finances, your health, and whether you plan to keep working before deciding.
Important retiring rules
Even after deciding when to claim your benefits, there are some key rules you should know before retiring:
- Retirement Earnings Test: If you work before reaching full retirement age and earn more than certain limits, some benefits may be temporarily withheld. Under full retirement age for the year → $23,400 limit (2025). In the year you reach full retirement age → $62,160 limit.
- Medicare Enrollment: You must sign up for Medicare at 65, even if you delay claiming Social Security benefits.
- Benefit Comparison: Check how much you would receive at: Age 62, full retirement age, and age 70.
- Confirm Your Full Retirement Age: Use the Social Security Administration (SSA) calculator to know your exact age.
How to successfully plan your retirement
Understanding the rules for retiring helps you avoid costly mistakes and make better decisions. So, we recommend you the following:
- Decide when to claim based on your finances, health, and work plans.
- Keep track of earnings limits if you continue working before full retirement age.
- Schedule Medicare enrollment at 65.
- Use SSA tools to estimate your benefits at different ages.
To sum it all up
Knowing when you can claim Social Security, how your age affects your monthly payment, and what happens if you keep working helps you avoid surprises and make choices that truly fit your life.
Retirement is not just about reaching a certain birthday—it’s about planning with clarity and confidence. By taking the time now to understand your options, you give yourself the best chance to enjoy a more secure and peaceful retirement when the moment arrives. So, do you already know when you want to retire or you might have to think twice?