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What is the Social Security Retirement Age?Social Security’s full-benefit retirement age is increasing gradually because of legislation passed by Congress in 1983. Traditionally, the full benefit age was 65, and early retirement benefits were first available at age 62, with a permanent reduction to 80 percent of the full benefit amount. Currently, the full benefit age is 66 years and 2 months for people born in 1955, and it will gradually rise to 67 for those born in 1960 or later. Early retirement benefits will continue to be available at age 62, but they will be reduced more. When the full-benefit age reaches 67, benefits taken at age 62 will be reduced to 70 percent of the full benefit and benefits first taken at age 65 will be reduced to 86.7 percent of the full benefit. There is a financial bonus for delayed retirement. An individual reaching the full-benefit age in 2017 (66 years and 2 months old) receives a monthly benefit that is 8 percent higher for each year he or she delays collecting benefits until the latest claiming age of 70, at which point benefits are 132% of what they would have been at the normal retirement age. (When the full benefit age reaches 67, benefits claimed at age 70 will be 24 percent higher because of that delay.) The maximum retirement benefit in 2017 for someone who waits until age 70 to collect benefits is $3,538 a month. For more information, see:
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 Have you ever wondered why age 65 is considered the "normal retirement age"? What if you plan to retire earlier—or later? Here’s how to time it just right. Retirement rules: Why 65?Age 65 has long been considered a typical retirement age, in part because of rules around Social Security benefits. In 1940, when the Social Security program began, workers could receive unreduced retirement benefits beginning at age 65. From 1983 to 2000, the rules changed to gradually increase the Social Security full retirement age to 67. Currently, the Social Security full retirement age is 66 for those born between 1943 and 1959, and 67 for anyone born 1960 or later. And the Social Security age requirement is not the only thing that's changed. In 1940, anyone retiring at age 65 would spend, on average, around a dozen years in retirement. Today, because of improvements in health care, that number has increased—and will likely continue to increase. So it's important to factor this trend into your retirement plans. Watch: How one woman found a new normal after leaving her long-time job. Avoid outliving your money.Whatever your age when you decide to retire, you don’t want to worry about outliving your money. Luckily, there are ways to help avoid it.
Retirement milestonesThere are a few key ages to keep in mind as you get closer to retirement:
Whenever you plan to retire, it's essential to create a strategy today. By reviewing your personal situation, a financial professional can help you set and work toward a target retirement age. Ready to get started?
Read next1 If a participant in a qualified retirement plan is still employed and not a greater than 5% owner, they are not required to start minimum distributions from that plan until they retire. 2 For the year 2020, taxpayers may have the option to not take an RMD from eligible retirement plans and IRAs. Subject to certain limited exceptions provided under the CARES Act. The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel, financial professional, or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC. Principal Life and Principal Securities are members of Principal Financial Group®, Des Moines, IA 50392. What is the earliest age to retire at?The earliest a person can start receiving Social Security retirement benefits will remain age 62. Social Security benefits are reduced for each month a person receives benefits before full retirement age.
How much will I get if I retire at age 62?According to the SSA's 2021 Annual Statistical Supplement, the monthly benefit amount for retired workers claiming benefits at age 62 earning the average wage was $1,480 per month for the worker alone.
Can I retire at age of 55?Can I Legally Retire at 55? There's nothing in the retirement rulebook that says you can't retire at 55 years old. In fact, some members of the FIRE (financial independence, retire early) movement aim to retire as early as 40. So it's perfectly legal to retire in your mid-50s if that's your goal.
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