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Normal Retirement Age (NRA)

Normal Retirement Age is set by the plan document and is the age at which early retirement reductions no longer apply. IRS considers age 62 or later a safe harbor NRA. Retiring before NRA triggers a permanent reduction to your benefit (typically 5-6.67% per year early). NRA is different from Social Security's Full Retirement Age (currently 67 for those born after 1960) and from the plan's early retirement eligibility age.

Example

If your plan's NRA is 65 and you retire at 60, you are 5 years early. At a 5%/year reduction, your benefit would be permanently reduced by 25% compared to waiting until 65.

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