Full Retirement Age (FRA) is the statutory age at which you are entitled to receive 100% of your Social Security Primary Insurance Amount (PIA). For individuals born in 1960 or later, FRA is 67. For individuals born between 1943 and 1954, FRA is 66. For birth years 1955–1959, FRA increases incrementally in 2-month steps (from 66 and 2 months up to 66 and 10 months).

If your FRA is 67 and you claim at the earliest possible age of 62 (60 months early), your monthly benefit is permanently reduced by 30%. The reduction formula cuts benefits by 5/9 of 1% per month for the first 36 months (20% reduction), plus 5/12 of 1% per month for each additional month beyond 36 (10% additional reduction).

For each year you delay claiming Social Security past your Full Retirement Age (up to age 70), you earn Delayed Retirement Credits (DRCs) of 8% per year (2/3 of 1% per month). If your FRA is 67, delaying until age 70 permanently increases your monthly benefit check by 24% above your FRA baseline.

Without factoring in investment returns or inflation, the nominal breakeven age between claiming early at 62 vs delaying to 70 typically occurs around age 78 to 80. If you live past age 80, the cumulative checks collected by waiting for the higher age 70 payout will permanently exceed the total money collected by claiming early at 62.

No. The Retirement Earnings Test only applies to beneficiaries who claim before reaching their Full Retirement Age and continue to work. Once you reach your statutory Full Retirement Age, there is zero limit on how much earned income you can receive without any reduction to your Social Security benefits.