What is the Full Retirement Age?

The full or normal retirement age is a benchmarkbenefits.
used for the provision of retirement benefits (orRecipients of NIS pensions in Trinidad and Tobago
full retirement benefits) in a state or country. Itare not entitled to State Benefits (the parallel to
may not necessarily be the mandatory retirementSocial Security). Those who qualify for the state
age, especially as the mandatory retirement agebenefit must be at least 65 years old and without
is contextually derived (based on occupation orany other source of retirement income. In
location for example). In some states orTrinidad and Tobago, the F.R.A. can be either 60
countries, the full retirement age (F.R.A.) mayor 65-dependent on the pension benefits for
coincide with the mandatory retirement age.which you qualify.
In the United States, it inextricably links toAs far as Social Security in the United States, the
maximum Social Security benefits. For years, thefull retirement age determines the size of the
full retirement age for Social Security was age 65,benefit you receive. Reductions in the Social
with the minimum age at which retirees couldSecurity benefit are based on how close you are
receive Social Security benefits being 62 years.to the F.R.A. In other countries, the F.R.A.
The 1983 Social Security Amendments containeddetermines eligibility primarily, unlike the US where
a proviso for marginal increases in the F.R.A.there is a difference between the eligible age and
(from 65) for those born after 1938.the age at which you get full benefits.
The United States Congress introduced theAs a benchmark, the full retirement age marks
amendments in light of increasing life expectancythe age at which someone who is receiving a
and improvements in health and healthcare ofdisability benefit will cease to receive that benefit.
senior citizens. As a result, your F.R.A. isInstead, that person will receive a retirement
dependent on your year of birth. The lowest fullbenefit (or senior citizen grant).
retirement age remains 65 but the benchmark forThere is considerable debate over the merits and
those born after 1960 is only 67 years. Click heredemerits of waiting to receive full Social Security
to determine what your full retirement age is.benefits at the full retirement age. Although early
In other countries, the full retirement age may berecipients (between 62 and the full retirement
dependent on your eligible benefits. In Trinidad andage) will receive a significantly reduced benefit, the
Tobago, for example, the majority of thenominal amount received over the longer period
working population contributes to the Nationalwill be greater. In any event, knowing and
Insurance Scheme (NIS). This entitles them to aunderstanding the impact of the F.R.A. on your
pension benefit at the age of 60- dependent onretirement/pension benefits is an integral part of
the contribution level. Therefore, early retireesproper planning for retirement.
have to wait until 60 to receive NIS retirement