For those born during or after 1960, the full retirement age is 67—at least in the United States. What age is retirement if you were born earlier? Your full retirement age will fall between 66 and 67, as seen below:
- Born between 1943 and 1954: 66
- Born in 1955: 66 and two months
- Born in 1956: 66 and four months
- Born in 1957: 66 and six months
- Born in 1958: 66 and eight months
- Born in 1959: 66 and ten months
- Born in 1960 or Later: 67
What Does “Full Retirement Age” Mean?
Your full retirement age is the age at which you can claim your full social security benefit. Your full benefit is calculated according to the average amount that you earned during your working years. Depending on how much you earned, the amount of this benefit will vary. The U.S. Social Security Administration offers the following guideline:
- Low earners will receive social security benefits equal to roughly 70% of their average earnings, at maximum.
- Middle earners will tend to receive roughly 40% of their average earnings in their social security payments.
- For high earners, the full social security payout may be as low as 27% of their average earnings.
Of course, you have the freedom to retire before or after your full retirement age—and the time at which you choose to retire can have a significant impact on your monthly payout. For example, someone born in 1960 who retires at 62 will see their monthly benefits cut by roughly 30%—once again according to the Social Security Administration. Conversely, this person’s monthly benefit would be higher than the ‘full’ amount if they delay their retirement, up to the age of 70.
When Should You Retire?
Experts say that your retirement income needs to equal roughly 70% of your pre-retirement income if you want to live comfortably during your golden years. This income will come from multiple sources, including but not limited to social security—and that means you need to think carefully about when you choose to retire.
If you’ve saved up a substantial amount of money or are drawing a significant income from your investments, you might be able to accept lower social security payouts. On the other hand, if your savings are not quite where you’d like them to be, you should plan to work at least until you reach your full retirement age. Alternatively, you might decide to retire early in order to embark on a second post-retirement career.
Talk to An Advisor About Retirement
No matter which way you’re leaning today, we recommend that you speak to a financial advisor about your options. Someone who knows your finances well will be able to make recommendations based on your current situation, ensuring that you can continue to live with intention. If you’ve come this far, you should know that the advisors at IntentGen Financial Partners are here for you! Contact us today to start a conversation.
IMPORTANT: Advisory Person(s) may use proprietary financial planning tools, calculators and third-party tools and materials ("Third-Party Materials") to develop your financial planning recommendations. The projections or other information generated by Third-Party Materials regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time. Thrivent Advisor Network, LLC and its advisors do not provide legal, accounting or tax advice. Consult your attorney and or tax professional regarding these situations. The return assumptions in Third-Party Materials are not reflective of any specific product, and do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment. Investing involves risks, including the possible loss of principal. Investment advisory services are offered through Thrivent Advisor Network, LLC, a registered investment adviser. This material, in and of itself, does not create an investment advisory relationship subject to the Investment Advisers Act of 1940. The purpose of the report is to illustrate how accepted financial and estate planning principles may improve your current situation. The term "plan" or "planning," when used within this report, does not imply that a recommendation has been made to implement one or more financial plans or make a particular investment. You should use this Report to help you focus on the factors that are most important to you. Review the Financial Planning Disclosure Document and the Financial Planning Agreement for a full description of the services offered and fees. Thrivent Advisor Network and its advisory persons do not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have general knowledge of the Social Security
tenets. For complete details on your situation, contact the Social Security Administration.