Short-Range Actuarial Projections |
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ACTUARIAL STUDY NO. 119
by Chris Motsiopoulos and Richard B. Tucker | |||||
B. SCHEDULED INCREASES IN NORMAL RETIREMENT AGE (NRA)
The normal retirement age (also referred to as the "full retirement age") is the age at which a person may first become entitled to unreduced retirement benefits; that is, the retirement benefit is equal to the primary insurance amount (PIA). The NRA is 65 for persons born before 1938, and it is scheduled to gradually increase to 67 for persons born after 1959. The table below shows the scheduled increases in NRA by year of birth. For benefit computation purposes, widows and widowers whose entitlement is based on having attained age 60 should add 2 years to the year of birth shown in the table.
The actual retirement benefit can be significantly higher or lower than the PIA, depending on the age at actual retirement. Delayed retirement credits are accumulated for each month retirement is delayed past NRA, and they serve as the basis for increasing the monthly benefit1. Conversely, monthly benefits are reduced by a certain percentage for each month of entitlement before NRA2.
1See Glossary definition of "Delayed retirement credit" for more details.
2See Glossary definition of "Benefit reduction" for more details.