Retirement Age. As Figure 34.5 confirms, the retirement program is by far the largest component of OASDI.
Individuals become eligible for Social Security retirement benefits when they reach certain ages. People can choose either “early” retirement (at age 62 to 64) or “normal” retirement (at age 65 to 67) . Those who choose early retirement receive a smaller monthly benefit because they’re expected to live longer in retirement.
For people born after 1940, the age threshold for “normal” retirement is increasing each year. By the year 2022, the age threshold for normal retirement will be age 67. This delay in benefit eligibility is intended to keep aging baby boomers working longer, thereby curtailing a surge in benefit outlays.