Reaching Full Retirement Age for Social Security in 2027? Here's Why You May Not Want to File Just Yet
Key Points
Full retirement age for Social Security is 67 for anyone born in 1960 or later.
Claiming benefits at full retirement age avoids a reduction in your monthly checks.
Holding off could give you larger benefits for life.
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If you'll be turning 67 in 2027, you should know that you'll be hitting a big milestone in the context of Social Security. Age 67 is Social Security's full retirement age. That's when you can collect your monthly benefits based on your earnings history without a reduction.
The earliest age to claim Social Security is actually 62. But for each month you take benefits before reaching full retirement age, those monthly checks are reduced. So if you were born in 1960 or later, waiting until 67 to claim Social Security can be a smart move.
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But that doesn't mean you should rush to claim Social Security next year if you'll be turning 67. You may find that waiting makes even more sense.
The upside of delaying Social Security
While full retirement age is when you get your Social Security checks without a reduction, delaying your claim past that point boosts your monthly benefits by 8% a year for life. And while this incentive does run out at age 70, if you hold off on filing for three years, you can boost your Social Security benefits by 24%.
Imagine your full retirement age benefit is $2,000 a month. Waiting until age 70 to file gives you $2,480 per month instead. And that's not the only perk.
Each year, Social Security benefits are eligible for a cost-of-living adjustment, or COLA. If you boost your benefits by waiting past full retirement age to file, each COLA that comes through will be worth more money to you by virtue of having a larger monthly baseline check.
Also, if you're the higher earner in your household and your spouse outlives you, they'll typically be entitled to survivor benefits from Social Security after you pass away. The larger your benefits are, the more money your spouse stands to collect.
Don't rush to claim benefits just because there's no reduction to worry about
If 2027 is the year you'll reach full retirement age for Social Security, you may be inclined to take benefits at that time. But there's a lot to be gained by waiting longer to file.
Even if delaying your claim until age 70 isn't feasible, holding off for a single year results in an 8% boost. And a smaller increase could help your retirement finances, too.
Remember, the more Social Security pays you each month, the less pressure there is on your savings. Keep that and the points above in mind when your 67th birthday arrives so you don't make a filing decision you regret.
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