Normal Retirement Age
Normal retirement age (NRA) is the age at which an individual becomes eligible to receive the full benefits of a pension plan. The normal retirement age is typically specified in the terms and conditions of the pension plan and may vary depending on the type of plan and the individual’s circumstances.
In many pension plans, the normal retirement age is 65, although it may be higher or lower depending on the plan. For example, some defined benefit pension plans may have a normal retirement age of 67, while others may have a normal retirement age of 60.
If an individual retires before the normal retirement age, they may be entitled to receive a reduced pension benefit. On the other hand, if an individual continues to work beyond the normal retirement age, they may be entitled to receive additional benefits or a higher pension benefit.
It’s important for individuals to understand the normal retirement age specified in their pension plan in order to make informed decisions about when to retire and how to plan for their retirement income.