How many months is a full reduction period if starting benefits at age 62?

The full reduction period for Social Security benefits when starting to receive them at age 62 is indeed 60 months, which is equivalent to five years. This is because the earliest age a person can begin receiving Social Security retirement benefits is 62, but doing so results in a permanent reduction of monthly benefits since the full retirement age (FRA) is later, depending on the individual’s birth year.

For most people born in 1960 or later, the full retirement age is 67. Therefore, if a person starts their benefits at 62, they are essentially taking their benefits five years earlier than the standard full retirement age, leading to that 60-month reduction period. This reduction accounts for the fact that the individual will be receiving benefits for a longer time, thus the monthly compensation is adjusted accordingly to account for the earlier payout. Understanding this timeline is crucial for anyone planning their retirement benefits strategy.