There is no single retirement age in the US. Federal law sets several different age thresholds, and the one that matters to you depends on what you’re trying to do. The earliest you can claim reduced Social Security is 62. Full Social Security retirement age is 67 for anyone born in 1960 or later. You generally can’t pull money out of a 401(k) or IRA without a penalty until 59½. Medicare kicks in at 65. And delayed Social Security credits stop growing at 70. Picking a retirement date means picking your way through all of them.
The Key Retirement Ages
- 59½ — penalty-free withdrawals from 401(k)s and IRAs begin
- 62 — earliest age to claim reduced Social Security retirement benefits
- 65 — Medicare eligibility begins
- 66 to 67 — full Social Security retirement age, depending on birth year
- 70 — delayed Social Security credits stop accruing
- 73 (rising to 75) — required minimum distributions from tax-deferred retirement accounts must begin
Each of these ages carries its own financial consequences. None of them is the “right” retirement age on its own.
Full Social Security Retirement Age by Birth Year
Full retirement age is the point at which you qualify for your complete, unreduced Social Security benefit. Federal law ties this age to your birth year through a graduated schedule set out in 42 U.S.C. § 416(l).1Office of the Law Revision Counsel. 42 USC 416 – Additional Definitions The Social Security Administration translates the statute into a straightforward birth-year table:2Social Security Administration. Retirement Age and Benefit Reduction
- Born 1943–1954: 66
- Born 1955: 66 and 2 months
- Born 1956: 66 and 4 months
- Born 1957: 66 and 6 months
- Born 1958: 66 and 8 months
- Born 1959: 66 and 10 months
- Born 1960 or later: 67
Full retirement age is not the earliest you can claim, and it is not the latest. It’s the neutral point the Social Security formula is built around.
Claiming Social Security at 62, 67, or 70
You can start collecting Social Security as early as age 62, but filing before full retirement age permanently shrinks your monthly check. The reduction formula works out to 5/9 of one percent for each of the first 36 months you claim early, plus 5/12 of one percent for each additional month beyond that.3Social Security Administration. Benefit Reduction for Early Retirement For someone whose full retirement age is 67, claiming at 62 means filing 60 months early, which cuts the benefit by 30 percent.4Social Security Administration. Early or Late Retirement That reduction is permanent. Your base benefit stays lower for life.
Waiting past full retirement age does the opposite. For every month you delay between full retirement age and 70, your benefit grows by two-thirds of one percent, roughly 8 percent per year for anyone born in 1943 or later.5Social Security Administration. Code of Federal Regulations 404.313 These delayed retirement credits stop accumulating at 70, so there’s no financial upside to waiting beyond that point.4Social Security Administration. Early or Late Retirement
The practical result: your monthly benefit at 70 can be more than 75 percent larger than what you’d receive at 62. Compounded over a retirement that may last decades, this is one of the most consequential financial choices most people make.
Working While Collecting Benefits
If you claim Social Security before full retirement age and keep working, an earnings test temporarily reduces your payments. In 2026, the annual earnings limit for someone under full retirement age all year is $24,480. For every $2 you earn above that amount, Social Security withholds $1 in benefits.6Social Security Administration. Receiving Benefits While Working
A more generous threshold applies in the calendar year you actually reach full retirement age. During the months before your birthday month, the limit jumps to $65,160, and Social Security only withholds $1 for every $3 earned above that.6Social Security Administration. Receiving Benefits While Working Starting with the month you hit full retirement age, the earnings test disappears entirely. Earn as much as you want without any benefit reduction.
The money withheld under the earnings test isn’t gone forever. Once you reach full retirement age, Social Security recalculates your monthly benefit to credit back months in which payments were reduced. Still, the temporary reduction surprises people who retire at 62 or 63 expecting a full check while working part-time, and for some early retirees it can wipe out most of a year’s benefits.
When You Can Withdraw From a 401(k) or IRA
Retirement accounts run on their own calendar, separate from Social Security. Under the federal tax code, pulling money from a 401(k), IRA, or similar tax-advantaged retirement account before age 59½ triggers a 10 percent additional tax on top of whatever regular income tax you owe on the distribution.7Internal Revenue Service. Substantially Equal Periodic Payments The penalty applies to the taxable portion of the withdrawal.
One important exception is the “Rule of 55.” If you leave your job during or after the year you turn 55, you can take penalty-free distributions from that employer’s plan, but only from that specific employer’s plan, not from an IRA or a previous employer’s 401(k). For public safety employees in government plans, the separation-from-service exception kicks in at age 50 instead of 55.8Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions
Required Minimum Distributions at 73
At the other end of the timeline, the government eventually forces you to start drawing tax-deferred savings down. Under 26 U.S.C. § 401(a)(9), you must begin taking required minimum distributions by April 1 of the year after you turn the applicable age. The SECURE 2.0 Act set that age at 73 for people who reach 72 after 2022 and reach 73 before 2033. For those who reach 74 after 2032, the applicable age rises to 75.9Office of the Law Revision Counsel. 26 USC 401 – Qualified Pension, Profit-Sharing, and Stock Bonus Plans
Missing an RMD is expensive. The excise tax is 25 percent of the amount you should have withdrawn but didn’t. That penalty drops to 10 percent if you correct the shortfall and file an updated return within the correction window.10Office of the Law Revision Counsel. 26 US Code 4974 – Excise Tax on Certain Accumulations in Qualified Plans
Medicare at 65
Medicare coverage generally begins at 65, whether or not you’ve started collecting Social Security.11Centers for Medicare & Medicaid Services. Original Medicare (Part A and B) Eligibility and Enrollment If you or your spouse paid Medicare payroll taxes during at least 10 years of work, you qualify for premium-free Part A (hospital insurance). Part B (medical insurance) requires a monthly premium of $202.90 in 2026.12Centers for Medicare & Medicaid Services. 2026 Medicare Parts A and B Premiums and Deductibles
The Initial Enrollment Window
Your first chance to sign up is a seven-month window: the three months before the month you turn 65, your birthday month itself, and the three months after.13Medicare. Joining a Plan Signing up during the first three months ensures coverage starts right at 65. Waiting until the tail end of the window delays your start date and can leave a gap in coverage.
Late Enrollment Penalties Follow You for Life
Missing the initial enrollment period without qualifying employer coverage triggers penalties that never go away. For Part B, you’ll pay an extra 10 percent on top of the standard premium for each full 12-month period you could have been enrolled but weren’t. Someone who delayed two years would owe a 20 percent surcharge, adding roughly $40.58 per month to the 2026 premium, permanently.14Medicare. Avoid Late Enrollment Penalties
Part D (prescription drug coverage) has a separate penalty: an extra 1 percent of the national base beneficiary premium ($38.99 in 2026) for every full month you went without creditable drug coverage. Like the Part B penalty, this surcharge is permanent.14Medicare. Avoid Late Enrollment Penalties A 14-month gap adds about $5.50 per month to your drug plan premium for as long as you have coverage.
The One-Time Medigap Window
Turning 65 also opens a one-time, six-month window to buy a Medicare Supplement (Medigap) policy on guaranteed-issue terms, meaning insurers cannot deny you coverage or charge more based on health conditions. This window starts the first day of the month you’re both 65 or older and enrolled in Part B.15Medicare. When Can I Buy a Medigap Policy Once the six months pass, insurers in most states can underwrite your application and deny coverage. If you plan to retire at 65 and want supplemental coverage, act during this window. It doesn’t come around again.