Step 3: Understand Your Full Retirement Age (FRA)

One of the most important terms in the world of Social Security is “Full Retirement Age,” often shortened to FRA. This is the age at which you are entitled to receive 100% of the retirement benefit you have earned.

Your FRA is not a single age for everyone; it’s determined by the year you were born. For many years, the FRA was 65, and many people still think of it that way. However, due to changes in the law designed to account for longer life expectancies, the FRA has gradually increased.

Here’s a simple breakdown:

If you were born in 1954 or earlier: Your FRA is 66.

If you were born between 1955 and 1959: Your FRA gradually increases by two months for each year. For example, for someone born in 1955, it’s 66 and 2 months.

If you were born in 1960 or later: Your FRA is 67.

You can find your specific FRA on your Social Security statement or by using the calculator on the SSA’s website. Knowing your FRA is critical because it is the baseline from which all your benefit calculations are made. If you decide to claim your benefits *before* your FRA, your monthly payment will be permanently reduced. If you decide to wait *after* your FRA, your monthly payment will be permanently increased.

Think of your FRA as your personal starting line for receiving your full, unreduced benefit. It’s a key piece of the puzzle you’ll need for the next, most important decision in this process.