Planning for retirement starts with one simple question: “What is my full retirement age?” Simply put, your full retirement age (FRA) is the age you become eligible to receive 100% of your Social Security benefits.
How To Calculate Full Retirement Age
Your FRA is based on the year you were born. If you were born between 1943 and 1954, your FRA is 66. For each year after that, the FRA increases by two months, so if you were born in 1955, it's 66 and 2 months; if you were born in 1956, it's 66 and 4 months, and so on. Anyone born in the year 1960 or later reaches full retirement age at 67.
Claiming Social Security before your full retirement age (FRA) will permanently reduce your monthly benefit by as much as 30%. On the other hand, delaying benefits beyond your FRA can increase your payments by up to 8% each year you wait, up to age 70.
Why Does Knowing Your Full Retirement Age Matter?
Once you know your FRA, you can start better planning for your financial future. Knowing your full retirement age is essential when planning for income needs, taxes, and the timing of other retirement assets. At Foster & Motley, we help clients build thoughtful retirement income strategies that take Social Security timing into account, so your decisions support both your lifestyle and long-term goals.
How Foster & Motley Can Help
Our comprehensive wealth management services take your FRA into consideration, helping you make informed choices that align with your life, your goals, and your legacy.
At Foster & Motley, we work closely with you to create a personalized retirement plan that integrates Social Security with your broader financial picture. If you’re unsure when to claim benefits or how retirement fits into your long-term plan, we’re here to guide you.
Looking for a trusted partner to help with retirement planning in Cincinnati, OH? Schedule a discovery call to start a conversation about your retirement strategy.
CONTACT US