Full Retirement Age [FRA]
When the Social Security Act was revised to allow one to receive unreduced benefits at Full Retirement Age [FRA], the publicity stressed age 65 since that was the FRA for those born 1937 or earlier.
Persons born 1938 or later may not realize that their FRA Will Not be age 65. The FRA is gradually going up to age 67. This means that the reduction for taking benefits at age 62 will increase from 20% to 30%!
While one will no longer be subject to a $1 reduction in benefits for each $3 earned above the earnings test exempt amount between FRA and age 70; the change increased the $1 reduction in benefits for each $2 earned above the earnings test exempt amount for individuals age 62 to FRA. This was a 2-year increase since one was subject to the $1 for $2 from age 62 to age 65 prior to the change. Also, one is still subject to the $1 for $3 reduction for earnings in months prior to the month one reaches FRA.
It is very important that one understands the earnings exempt amounts which change annually; and, the increase in the FRA from age 65 to age 67. You may find the increase in FRA on SSA Online
For a personal consultation for a nominal fee of the impact of the change in FRA, please send an email to benefits @ govtbenefits.com