How is the full retirement age determined for individuals born in 1960 or later?

The correct choice is based on the adjustments made to the Full Retirement Age (FRA) for Social Security benefits as part of legislative changes over the years. For individuals born in 1960 or later, the FRA is set at 67 years old. This reflects a gradual increase in the retirement age that was established by the Social Security Amendments of 1983, aiming to ensure the long-term solvency of the Social Security Trust Fund as life expectancy increases.

Individuals born before 1960 share different full retirement ages, which gradually change depending on the year of birth. However, for anyone born in 1960 or later, the age of 67 is the benchmark for receiving full benefits without any reduction. This means that if they choose to retire earlier, their benefits will be reduced accordingly based on the number of months they claim benefits before reaching the FRA.

Understanding the full retirement age is crucial for financial planning regarding retirement, as it impacts the amount of benefits one will receive from Social Security.