Social Security Report

Social Security’s Full Retirement Age (FRA) - AMAC Foundation

Once upon a time, there was no mystery about Social Security’s full retirement age – everyone received their full benefit if they claimed at 65, the age set when the program was first enacted in 1935. But way back in 1983, the Social Security program was facing financial difficulty, about to run out of money needed to pay 100% of its benefit obligations. Congress knew it had to act to restore the country’s premier retirement plan to solvency, so Democrats and Republicans worked together (imagine that) to develop multifaceted legislation to get the job done. Raising the age at which full retirement benefits were paid was part of that broad 1983 legislation – rightfully so since average life expectancy had risen substantially over the years. 

Implementing the New Retirement Age 

Lawmakers knew that raising the full retirement age (FRA) would be an unpopular change with voters. So, Congress (as politicians) found a way to ease potential voter ire – increase the FRA gradually so that only future beneficiaries were affected. Hence, a new formula for gradually increasing Social Security’s full retirement age was enacted, and it remains law today.  

When enacted in 1983, the new FRA rules affected those between the ages of 23 and 45 at the time – too far from retirement to cause great concern. Those born in 1938 were the first to be affected by the new rules, which added 2 months to the FRA according to the beneficiary’s year of birth. Here’s what the new (and current) full retirement age chart looks like: 

What FRA Means to You 

Claiming exactly at full retirement age means getting 100% of the SS retirement benefit earned from a lifetime of working and paying payroll (FICA) taxes. Claiming before FRA, however, means a permanently reduced Social Security retirement benefit. Spousal and survivor benefits are also affected by the date on which those benefits are claimed relative to full retirement age, as shown above. FYI, most beneficiaries claiming Social Security today will have a full retirement age of 66, 67, or somewhere in between. 

What will the Future Hold for FRA?

Well, that’s really anybody’s guess at this point, although many organizations offering guidance to Congress in dealing with the impending Social Security insolvency (see ) view further increasing FRA to be an important consideration. Continued improvement in life expectancy is generally cited in this guidance, because since 1940, life expectancy for those reaching age 65 has grown substantially, increasing by 9.7% for females and 8.5% for males. This trend is expected to continue to increase through the end of the century, causing Social Security to pay benefits for much longer than the program’s design supports, a problem exacerbated by ongoing changes in workforce demographics.

Does all this still seem complicated? Well, it is – which is why the AMAC Foundation’s Social Security Advisory Service offers free guidance on Social Security matters such as how couples should approach their benefit claiming options. Email questions to ssadvisor@amacfoundation.org or call us at 1 (888) 750-2622.