The key age for people who want to start drawing Social Security benefits in 2027

NewsSocial Security benefits can be claimed starting at age 62 but there’s a penalty for doing so, reducing your monthly benefit by as much as 30% as compared to waiting until full retirement age.CanvaThere’s a key age for people who are thinking of starting their Social Security benefits in 2027.People born in 1960 or later will reach full retirement age (FRA) at age 67, the age they will hit next year. FRA is the time when you qualify for 100% of benefits without penalty for early retirement.Social Security benefits can be claimed starting at age 62 but there’s a penalty for doing so, reducing your monthly benefit by as much as 30% as compared to waiting until FRA. Wait until FRA and you receive 100% of calculated benefits; wait until age 70 and you get up to 124% of your full retirement benefits.From Social Security’s inception in 1935 until the passage of the Social Security Amendments of 1983, FRA was 65. In 1983, Congress passed legislation to gradually raise FRA to reflect increases in life expectancy.The act established a gradual increase to the FRA, and, starting in 2021, the FRA has grown by two months a year. Currently, FRA is:People born 1943-1954 – Age 66People born in 1955 – 66 years and 2 months People born in 1956 – 66 years and 4 monthsPeople born in 1957 – 66 years and 7 monthsPeople born in 1958 – 66 years and 8 monthsPeople born in 1959 – 66 years and 10 months1960 and later - 67 yearsHowever, 67 is the cap for FRA. Under the current law, the target age is 67 and won’t climb any higher, though some experts have floated the idea of increasing FRA to help address Social Security’s looming shortfall.There is no requirement, however, that people retire or start drawing benefits at age 67. In fact, there are advantages to waiting past FRA to retire. Social Security benefits increase roughly 8% each year you delay past your full retirement age until age 70, and waiting until 70 also allows to work without any reductions to benefits.Social Security provides an easy calculator if you need to determine your FRA. You can use that here.Leada Gore is a Senior Managing Producer for the Advance Local trending team, covering finance, government and consumer issues. She worked as a Managing Producer for AL.com, starting at the site in 2013 as the...