Definition
The federal retirement benefit funded by payroll taxes. You can claim as early as 62 at a reduced amount; full retirement age is 67 for most current workers, and delaying to 70 increases the benefit roughly 8% per year.
Why it matters
Claiming age is one of the biggest retirement decisions most people make: the gap between claiming at 62 and 70 is a benefit roughly three-quarters larger, guaranteed and inflation-adjusted for life.
Example
A worker whose full benefit at 67 is $2,000 a month gets about $1,400 by claiming at 62, or roughly $2,480 by waiting until 70. For someone expecting a long life, delaying is an inflation-protected annuity no insurer can match.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.