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What Is Normal Retirement Age?

What Is Normal Retirement Age?

As an employee, you probably have heard about the normal retirement age (NRA) if you are employed and get retirement benefits. You may not be very familiar with what it means and why it matters. A good understanding of what it is will help you know when you will reach that career life stage.

As you know, eligibility for monthly benefit payments is a key aspect of retiring. Knowing it will ensure you pursue all those benefits when it reaches. Although you can define normal retirement age, there are differences in how you can do it. A wide range of factors can help you understand what it is.

This blog post is a guide to what normal retirement age entails. It will provide a background understanding of it and how it affects your benefits. You'll also learn more about working before the normal retirement age. Read on to have a solid knowledge of NRA and its benefits.

Let's get started.

Understanding Normal Retirement Age

The first step to understanding the average retirement age is defining it. According to The Corporate Finance Institute, the normal retirement age is when an employee is eligible to leave the workforce and receive their full benefits. It's also referred to it as the full retirement age.

Once you get to this age, you can follow up on the benefits you deserve. However, you must have sufficient credits before collecting these benefits. In the United States, the normal retirement age currently stands at between 65 years to 67 years.

Your year of birth will determine your normal retirement age and when you get your first social security check. However, the earliest you can take social security benefits is when you reach age 62. However, you will be getting reduced monthly payments after claiming it. Certain factors will determine when you'll start to benefit.

For instance, it could start when you reach the earlier side of your normal retirement age. Also, it could be after specific years of service, depending on whether you are a public service, police, or military officer. You may also qualify for benefits after termination of active service.

How Normal Retirement Age Affects Your Benefits

So, now you have your answer to the question, “what is the normal retirement age?” It would be best if you also remembered that the normal retirement age could affect your benefits. This will depend on when you claim your benefits, whether before, after, or when it's due. It is a good idea to claim your benefits when they are due to avoid various issues.

The benefits you get will depend on when you apply for your social security. If you want to get full benefits, apply for your social security when you reach your normal retirement age. You'll get reduced benefits if you apply before your NRA.

You can also increase your benefits by applying after your normal retirement age. If you do so at 70 years old, you will significantly boost your benefits. Thus, if you have assets and investments that will generate you some retirement income so you can delay your application.

In short, nothing prevents you from starting to draw social security benefits at age 62. You won't be in breach of any law for drawing these benefits later. It all depends on your needs and how long you can sustain your lifestyle as a retiree without drawing your benefits.

The only point to note is that your monthly payments will reduce if you do it before. In this case, the benefits you get will depend on how far you are from your normal retirement age. Also, it's worth mentioning that the reduction in monthly payments will be permanent.

For instance, according to SSA guidelines, your monthly payments will reduce by 30% if you start at age 62. You earn higher monthly payments permanently after beginning to draw your benefits after your NRA. The longer it takes, the more delayed retirement credits you amass.

Higher monthly payments will make your retirement period seamless. Your old age and your surviving spouse's will be rewarding, and you'll have time to enjoy your sunset years. You can pick the best time to apply for benefits by comparing options on the Social Security website.

Working Before Normal Retirement Age

There's also more to know about work and your normal retirement age. For instance, what happens if you apply for and start receiving your social security benefits while still working. You will lose some of your benefits, and the loss will be higher if you haven't reached your NRA.

Your losses will continue until the time you'll reach your NRA. As of 2021, the loss stands at $1 for every $2 in wages you earn over $18,960 per year. You may also decide to work but wait for benefits till your NRA. In this case, you'll lose $1 for every $3 in wages earned over $50,520.

The best way to go about this is to find an option that will work best for you. Sit down with your spouse and find the best option that will suit and benefit your retirement plan. It would help if you looked at the long-term sense of a plan before you take or even consider it because it is about your future.

Everything Else To Know About Normal Retirement Age

The normal retirement age applies to more than we have discussed above. It also applies to pension plans in ways that we'll see below. For instance, you can benefit from your pension plan even below 62 years. According to IRS rules and regulations, this will apply even after leaving work.

You also should start to receive social security retirement benefits 60 days after events specified by the IRS retirement system and Social Security Administration’s rules and amendments. This should be after the end of the last plan year. These circumstances include:

  • You've turned 65 years, or sometimes this can be sooner if the plan has an early retirement age.
  • You've been active in the plan for ten or more years.
  • You've ended service with your employer.

It's also good to keep special attention to age 59 ½. At this age, you'll be allowed to withdraw from your 401K, IRA, and other tax-advantaged accounts penalty-free. It's also possible to enjoy penalty-free withdrawals from a 401K if you retire early, let's say at 55.

However, you should remember that whatever benefits you get will be taxable. This simplifies the definition of a person's normal retirement age. An NRA will apply when and how you access your money saved in any retirement account, whether it is a 401K or an IRA.,

In the end, you can never have a blanket definition of normal retirement age. It differs depending on various factors, including the retirement age for that year. For instance, the retirement age in 2015 was 64 for men and 62 for women. Your NRA would depend on your date of birth.

Thus, you should research enough and not just assume or estimate your normal retirement age. It is easy to get the facts from various sources like social security websites. Working with facts will make it easier to plan and get the desired returns.

Once you have your benefits, think about multiplying them. Consider profitable assets that will generate monthly income. For instance, you can buy assets like bullion bars to store value and then resell them later when you are in need.

Key Takeaways

There're so many facts to take away from what we've discussed in this blog post. For instance, you now know that:

  • The normal retirement age is the time when one can retire and receive their full benefits.
  • This age ranges anywhere between 65 and 67 years, depending on when you were born.
  • Your benefits will get affected depending on if you retire before or after your NRA.
  • Various concepts related to NRA can also affect the benefits you get from it.

Now you know everything you need about Normal Retirement Age (NRA). You can now tell when your NRA comes and start following up on your benefits. Also, do not forget to invest as you wait for these benefits when the time comes. You can consider gold bars like those sold by Acre.


This post has provided the best details you need to know about the normal retirement age. We believe you now have a proper background understanding of NRA. For instance, you now know the best time to start making follow-ups on when you reach your normal retirement age.

You also know the benefits you'll get once your normal retirement age comes. In addition, you now know the potential dangers of claiming your benefits before or after your NRA. Thus, it will be best to claim your benefits when they are due and not earlier or too late.

Once you get your benefits, think about investing and multiplying your money. You can think of profitable businesses and assets that can help you store value for many years. You can reach out to us if you want to consider gold bars as a potential investment to secure your future.


Normal Retirement Age (NRA) - Overview, How It Works, Claims | corporatefinanceinstitute

Normal retirement age (NRA) |

Guidance on Normal Retirement Age Rules for Governmental Plans | Internal Revenue Service