In Virginia, just like in any other U.S. state, the age at which you can draw Social Security benefits is determined by federal law, primarily based on your birth year. While you can start receiving benefits as early as age 62, your Full Retirement Age (FRA)—the age at which you are entitled to 100% of your primary insurance amount—varies.
Understanding Your Full Retirement Age
Your Full Retirement Age (FRA) is crucial because claiming benefits before this age will result in a permanent reduction of your monthly payments. Conversely, delaying your benefits past your FRA, up to age 70, can increase your monthly benefit amount.
The table below outlines the Full Retirement Age based on your birth year, as consistent with federal Social Security guidelines:
| Birth Year | Age to Receive Full Social Security Benefit |
|---|---|
| 1957 | 66 + 6 months |
| 1958 | 66 + 8 months |
| 1959 | 66 + 10 months |
| 1960 and later | 67 |
Source: Virginia Retirement System - Social Security
Key Ages for Social Security Benefits
There are three primary ages to consider when planning to draw Social Security benefits:
- Age 62: Earliest Eligibility
- You can begin receiving Social Security retirement benefits as early as age 62. However, choosing this option will result in a permanent reduction of your monthly benefit amount. The reduction is significant, typically around 25-30% less than what you would receive at your Full Retirement Age. This is often chosen by individuals who need the income earlier, are no longer able to work, or simply prefer to start receiving benefits.
- Full Retirement Age (FRA): Unreduced Benefits
- This is the age at which you qualify for 100% of your basic Social Security benefit. As shown in the table above, this age gradually increases from 66 for those born in 1943-1954 to 67 for those born in 1960 or later. Claiming at your FRA ensures you receive the maximum benefit you're entitled to based on your earnings history, without any reduction for early claiming.
- Age 70: Maximum Delayed Benefits
- For every year you delay claiming benefits past your Full Retirement Age, up to age 70, you earn Delayed Retirement Credits (DRCs). These credits increase your monthly benefit amount by a certain percentage, typically 8% per year. After age 70, there's no further benefit to delaying, as your benefits will not increase further. Delaying can be a powerful strategy for individuals who are still working, have other income sources, or simply want to maximize their monthly Social Security payout.
Practical Considerations for Virginia Residents
While the rules for Social Security are federal, your personal financial situation and retirement planning in Virginia will influence your claiming decision. Factors to consider include:
- Your employment status: Are you still working? Will your income affect your Social Security benefits if you claim early?
- Other retirement savings: Do you have a pension (like from the Virginia Retirement System, VRS), 401(k), or other savings to draw upon?
- Health and life expectancy: Your personal health and family history of longevity can influence whether an early or delayed claim makes sense.
- Spousal or survivor benefits: The age you claim can also impact the benefits your spouse or survivors may be eligible to receive.
It is always advisable to consult with a financial advisor or directly with the Social Security Administration (SSA) to understand the best claiming strategy for your specific circumstances.
