A gate dielectric and a gate electrode are formed over a plurality of semiconductor fins. An inner gate spacer is formed and source/drain extension regions are epitaxially formed on physically exposed surface of the semiconductor fins as discrete components that are not merged. An outer gate spacer is subsequently formed. A merged source region and a merged drain region are formed on the source extension regions and the drain extension regions, respectively. The increased lateral spacing between the merged source/drain regions and the gate electrode through the outer gate spacer reduces parasitic capacitance for the fin field effect transistor.