For decades, the United States has had a traditional retirement age of 65. However, legislative changes enacted in 1983 gradually altered that age, affecting millions of citizens.
Those born in 1959 will have a full retirement age of 66 years and 10 months, not 67, as many believe.
This change addresses the need to adapt the Social Security system to the current demographic reality, in which people are living longer and working for longer periods of time.
What is the exact retirement age if you were born in 1959?
According to the Social Security Administration (SSA), people born in 1959 reach full retirement age at 66 years and 10 months. This means that only then will they be able to claim their full monthly benefits. If they decide to do so earlier, say at age 62, they will receive a lower amount.
The reduction can be significant: at age 62, retirees receive only 70.8% of their full benefit. This distinction could have a significant impact on financial planning in the coming years.
Why was the retirement age changed?
The change in retirement age was part of a 1983 reform package passed by Congress to ensure the system’s long-term viability. As life expectancy increased, so did the need to change the timing of when people started receiving benefits.
The full retirement age has gradually increased since 1938, reaching 67 for those born in 1960 or later.
What happens if you claim your benefits early?
While it is possible to begin receiving Social Security benefits as early as age 62, doing so before the full retirement age results in a permanent reduction in monthly benefits.
For example, if you were born in 1959 and decide to retire at the age of 62, you will only receive 70.8% of your benefits. This reduction continues throughout your life.
The decision to retire should be carefully considered, taking into account health, income, personal savings, and family needs.
Options for those who wish to continue working
Many people choose to work beyond the retirement age. This not only allows for greater savings, but it also increases the monthly benefit if the claim is delayed.
The benefit increases by up to 8% for each year that retirement is postponed beyond the full retirement age.
Delaying retirement can be a wise decision for those who are in good health and want to maximize their income during retirement.
Plan with clear information
If you were born in 1959, the full retirement age is 66 years and 10 months, not 67. This is critical information for making prudent financial decisions in 2025. Knowing your full retirement age will help you plan ahead and avoid surprises that could jeopardize your financial stability.
Always check with official sources, such as the SSA, to confirm your personal situation and make informed decisions about your future.
