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The Social Security Administration (SSA) has confirmed a significant change in the Full Retirement Age (FRA), marking the end of the traditional retirement age of 65.
This adjustment reflects evolving demographics and aims to ensure the program’s sustainability.
Understanding the Shift in Full Retirement Age
Historically, 65 was the standard age to receive full Social Security benefits. However, due to increasing life expectancies and financial pressures on the Social Security system, the FRA has been gradually increasing.
As of 2025, the FRA is 66 years and 10 months for individuals born in 1959. For those born in 1960 or later, the FRA will be 67 years.
Detailed Breakdown of Full Retirement Age by Birth Year
The following table outlines the FRA based on birth year:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943–1954 | 66 years |
| 1955 | 66 years and 2 months |
| 1956 | 66 years and 4 months |
| 1957 | 66 years and 6 months |
| 1958 | 66 years and 8 months |
| 1959 | 66 years and 10 months |
| 1960 and later | 67 years |
Note: Individuals born on January 1 should refer to the previous year.
Impact of Early and Delayed Retirement
Claiming Social Security benefits before reaching FRA results in reduced monthly payments. Conversely, delaying benefits past FRA increases monthly payments up to age 70.
| Age When Benefits Start | Percentage of Full Benefit |
|---|---|
| 62 | 70% |
| 63 | 75% |
| 64 | 80% |
| 65 | 86.7% |
| 66 | 93.3% |
| 67 | 100% |
| 68 | 108% |
| 69 | 116% |
| 70 | 124% |
Based on a full retirement age of 67.
Additional Changes Affecting Retirees in 2025
- Cost-of-Living Adjustment (COLA): Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.5% COLA in 2025.
- Maximum Taxable Earnings: The maximum amount of earnings subject to the Social Security tax will increase to $176,100.
- Earnings Limits: For individuals under FRA, the earnings limit is $23,400; for those reaching FRA in 2025, it’s $62,160.
The shift in the Full Retirement Age reflects the SSA’s efforts to adapt to changing demographics and ensure the long-term viability of Social Security. Understanding these changes is crucial for effective retirement planning.
FAQs
Can I still retire at 62?
Yes, you can begin receiving Social Security benefits at 62, but your monthly payments will be permanently reduced compared to waiting until your FRA.
Will the FRA continue to increase beyond 67?
Currently, there are no official plans to increase the FRA beyond 67. However, discussions continue about potential future adjustments to address the program’s solvency.
How does delaying retirement beyond FRA benefit me?
Delaying retirement increases your monthly benefit by 8% for each year you wait past your FRA, up to age 70. This can result in significantly higher lifetime benefits.