Retirement Age Explained and Defined

Retirement age is the age at which a person is considered eligible to retire and receive benefits. In many countries, retirement age is determined by law and is typically between 60 and 67 years old.

The retirement age varies depending on the country and the type of retirement plan. For example, in the United States, the full retirement age for Social Security is 67 years old, but it can be as early as 62 for reduced benefits or as late as 70 for increased benefits.

Retirement age is not the same as the age of eligibility for certain benefits, such as Medicare, which is available to people 65 and older.

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Your full retirement age, or FRA, is the age at which you can claim the full benefits you've accrued throughout your working years.

The good news is that you can start claiming Social Security payments as early as age 62, but retiring at that point won't give you access to your full retirement benefits.

For decades, everyone had the same full retirement age of 65, but Congress introduced amendments in 1983 to increase the normal retirement age over time.

If you were born between 1943 and 1954, your FRA is 66, which is a relatively straightforward calculation.

Anyone born between 1955 and 1959 has a FRA between 66 and 67, with the exact age determined by the month of their birth.

For example, if you were born in 1958, your FRA is 66 and eight months.

The day you were born can also affect your FRA, with those born on the first day of a month having their FRA calculated as if they were born in the previous month.

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Your normal retirement age is the age at which you can receive a full retirement benefit, but you can start receiving a benefit earlier if you meet all eligibility requirements.

Benefits that begin early, before your normal retirement age, are permanently reduced because the benefit is expected to be paid longer.

You can begin receiving a retirement benefit at the earliest age possible, known as your Minimum Retirement Age (MRA), as long as you meet all other eligibility requirements.

You can find out more information about calculating your retirement benefits in the Calculating Your Retirement Benefits (ET-4107) brochure.

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Retirement age is a significant decision, and it's essential to consider the risks and consequences of retiring too early.

You risk looking at 30 to 40 years of not working if you retire at age 58, which can be a long time to rely on your savings.

Retiring too early can lead to coming up short or not having enough money, especially during economic downturns like recessions.

You'll also need to come up with health care coverage for the gap years between retirement and age 65, when Medicare typically kicks in.

The "magic number" for retirement savings is $1.26 million, according to a recent survey, but many people feel unprepared for retirement.

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You're considering early retirement, but have you thought about the risks involved?

You risk running out of money if you retire too early, especially if you live longer than expected.

The "magic number" for a comfortable retirement is around $1.26 million, according to a report by Northwestern Mutual.

If you stop working at age 58, you'll need to come up with health care coverage for the gap years before Medicare kicks in at age 65.

A recession or economic downturn could leave you struggling to make ends meet.

You need to have enough saved to tide you over for 30 to 40 years of not working, as people are living longer.

Here's a breakdown of the potential risks:

It's essential to carefully consider these risks before making a decision about early retirement.

Your Mandatory Age of Separation (MAS) is the age at which you must separate from the service of your organization, regulated by the Staff Regulations and Rules of your employing organization.

The UNJSPF has no say in whether you can stay in active service after reaching your MAS or NRA, but some organizations have changed their MAS rules. For example, the UN changed its MAS to 65 effective January 2018.

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If your MAS is 65, you can continue working and contributing to the UNJSPF, increasing your future pension entitlements. However, if your NRA is 62 and you decide to continue working, you will simply continue contributing to the UNJSPF but won't be eligible to receive a pension.

In some cases, your NRA may not be affected by a change in MAS, so it's essential to check your specific situation. If your MAS is different from your NRA, it's recommended to contact the Fund for advice on your benefit options before separating from service.

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Calculating your Social Security benefit can be a bit of a puzzle, but it's essential to understand how it works. The SSA uses a formula that factors in your 35 highest years of earnings, indexed for inflation, to determine your primary insurance amount (PIA).

You can start receiving your PIA at your full retirement age (FRA), but if you take it earlier, your monthly benefit will be lower. For instance, if you were born in 1960 or after, you can receive 86.1% of your PIA at age 64 and 11 months.

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Once you reach your FRA, your benefit amount will increase incrementally each month you delay, at a rate of 0.67% per month. You can continue to delay past your FRA to increase your benefit, but your maximum benefit will be reached at age 70.

You can earn up to $62,160 in the year you reach your FRA without losing benefits, but earning more than that will result in a penalty.

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Your primary insurance amount (PIA) is based on your 35 highest years of earnings, each indexed for inflation. This formula is used to calculate your benefit at Full Retirement Age (FRA).

The SSA has a set formula to calculate the size of your benefit at FRA, and it's also known as your PIA. This formula is somewhat convoluted, but it factors in your 35 highest years of earnings, each of which are indexed for inflation.

Your FRA determines when you’re eligible to receive your PIA, and if you elect to receive benefits any time before your FRA, you’ll receive a lower monthly benefit. Every month you wait from 62 until your FRA, your monthly benefit will increase incrementally.

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For instance, if you were born in 1960 or after, you can receive 86.1% of your PIA at age 64 and 11 months. You can collect 92.2% of your PIA once you hit 65 and 10 months.

The amount you receive at your FRA is not your maximum possible benefit, and you can continue to delay past your FRA, which will cause your eventual benefit to continue to increase at a rate of 0.67% per month.

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If you're a widow or widower collecting survivor benefits, your full retirement age (FRA) may be different. You may be able to begin receiving benefits four months earlier than the normal retirement age for your own Social Security benefits.

For example, if you were born in 1956, your FRA is 66 and four months, but survivors may begin receiving benefits at age 66. You'll receive a reduced monthly benefit if you want access to your survivor benefits before reaching your FRA.

The earliest you can begin claiming survivor benefits is 60, but keep in mind that taking benefits at this age will also reduce your monthly payment.

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Full retirement age (FRA) is a crucial factor in determining when you can claim your full Social Security benefits.

Claiming benefits before FRA results in reduced payments, so it's essential to understand how FRA impacts your benefits.

While benefits are available as early as age 62, claiming before FRA can significantly lower your monthly payments.

Delaying past FRA increases your monthly benefits, making it a smart decision for those who can afford to wait.