Beginning in 2025, the full retirement age (FRA) in the United States will be adjusted, affecting millions of workers who plan to retire.
This change is part of an ongoing legislative reform aimed at adapting to longer life expectancy while also ensuring the financial sustainability of the Social Security system.
Full Retirement Age Increase in 2025
For decades, the full retirement age in the United States was 65 years. However, as of 2025, people born in 1959 will have to wait until they are 66 years and 10 months old to receive their full Social Security benefits.
For those born in 1960 or later, the full retirement age will be 67. This gradual increase reflects demographic changes and the economic adjustments required to keep the system stable.
Workers still have the option to retire early at 62 years old, but doing so results in a permanent reduction in monthly benefits.
If an individual with a full retirement age of 67 claims benefits at 62, their payments will be reduced by approximately 30%.
Since these payments are spread over a longer period, retirees must carefully consider the financial implications.
Delaying Retirement for Higher Benefits
Choosing to delay Social Security benefits beyond the full retirement age has financial benefits. The monthly payment increases by 8% for each year that benefits are postponed until the age of 70.
This means that by waiting until 70, retirees could receive up to 32% more per month than if they had started claiming at the age of 66 and 10 months.
To make an informed decision, people should consider their financial needs, health status, and long-term goals.
Furthermore, regardless of additional income, those who continue to work after reaching their full retirement age will not see their benefits reduced.
Proper planning is necessary to maximize Social Security benefits and ensure a financially secure retirement.
