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What Age is Retirement?

April 17, 2023

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.

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