Alamy Age 65 is the year we traditionally associate with retirement, but this age is declining in significance. Only one major retirement benefit still kicks in at this age, and plenty of people aspire to retire at both earlier and younger ages. Here's a look at why age 65 no longer resonates as a target retirement age: You won't qualify for full Social Security benefits. While you can begin Social Security payments as early as age 62, you won't get the full amount you have earned unless you sign up at your full retirement age. The full retirement age used to be 65 for people born in 1937 or earlier, but has since been increased to 66 for most baby boomers and 67 for everyone born in 1960 or later. If you claim your Social Security benefit at age 65 you will get a reduced monthly payment compared to waiting until your full retirement age. For example, a worker born in 1965 will get 13.3 percent smaller monthly payments if he signs up at age 65 instead of waiting until his full retirement age of 67. Spousal benefits are also reduced if you claim them at age 65. While spouses are entitled to 50 percent of the higher earner's benefit payment if it's more than they can get based on their own work record, if you begin receiving spousal payments at age 65 you will get only 41.7 percent of the higher earner's payments.
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