What does Social Security define as “full retirement age,” and how much are benefits reduced if I apply earlier?
Full retirement age is 65 for workers born on or before January 1, 1938. Such a worker who started receiving benefits at 62 accepted a 20 percent reduction in monthly benefits. For workers born after that date, full retirement age is gradually raised until it reaches age 67 for workers born on or after January 1, 1960. As the law stands today, such a worker who chooses to receive benefits starting at age 62 instead of 67 will accept a 30 percent reduction in monthly benefits to make up for the five years of additional payments. Such a worker who applies later than age 67 and up to age 70 will receive increased benefits to compensate for the shorter payment period.
