California Life and Health Insurance Practice Exam

What determines the Social Security normal retirement age?

1. Type of employment

2. Year in which worker was born

3. Duration of employment

4. Amount of Social Security contributions

The correct answer is: Year in which worker was born

The determination of the Social Security normal retirement age is based on the year in which a worker was born. This system is designed to account for demographic changes and life expectancy trends over time. As a result, the normal retirement age can vary; individuals born in different years have different retirement age thresholds. For example, if a person was born in 1937 or earlier, the normal retirement age is 65. However, for those born in later years, particularly after 1960, the age gradually increases up to 67. The other factors mentioned do not influence the normal retirement age. While the type of employment can affect a person’s ability to retire or the specific benefits they receive, it does not alter the established age for receiving full Social Security benefits. Similarly, the duration of employment may influence benefit amounts but not the age itself. Lastly, the total amount of contributions made to Social Security impacts the benefits received but does not affect the predetermined retirement age set by the year of birth.