Have you ever heard the term “full retirement” as it relates to Social Security? The term full retirement has a specific meaning when it is related to Social Security retirement benefits. If you have a retirement plan, such as a 401(k) at work or even teacher retirement, it may refer to full retirement also. Don’t get those two meanings confused. Full retirement for Social Security means something different than full retirement for an employer retirement plan.
Full retirement for Social Security is the age at which an eligible person can receive full benefits. The full benefits are called the Primary Insurance Amount or PIA. How to calculate PIA is a topic for another day.
However, a person’s full retirement age for Social Security benefits is determined by the year in which they were born.
Here are the specifics:
a. If born between 1950 and 1954, the full retirement age is 66
b. If born in 1960 or later, full retirement age is 67
c. If born between 1955 and 1959, add two months to the full retirement age for each year (1955—66 and 2 months, 1956—66 and 4 months, 1957—66 and 6 months, 1958—66 and 8 months, 1959—66 and 10 months)
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