The Social Security Administration is rolling out a planned adjustment to the Full Retirement Age (FRA) in 2025, moving it to 66 years and 10 months for those born in 1959. This change is part of a gradual shift aimed at keeping the Social Security program sustainable and in line with increasing life expectancies.
For anyone turning 66 in 2025, it’s important to know that you’ll need to wait an additional 10 months to qualify for full retirement benefits. This adjustment doesn’t impact those already receiving benefits but could make a big difference for those still planning their retirement timeline.
Why Is the FRA Increasing?
The FRA wasn’t always this high. Originally, it was set at 65 years, but in 1983, reforms were made to increase it incrementally to 67. These changes were introduced to account for people living longer, which puts extra strain on Social Security funds.
By 2027, the FRA will reach its final target of 67 for individuals born in 1960 or later. For now, those born in 1959 will be the first group affected by the 2025 change.
How Does This Affect Your Benefits?
- Claiming Early: You can still claim Social Security as early as 62, but there’s a catch. Taking benefits before your FRA means your monthly payments will be permanently reduced. For instance, claiming at 62 could shrink your benefit by as much as 30%.
- Delaying Benefits: On the flip side, waiting past your FRA—up to age 70—comes with rewards. For every year you delay, your monthly benefit increases by about 8%. For those with the financial flexibility to wait, this could mean significantly larger checks in the long run.
What Should You Do Now?
This change may feel like a small shift, but it can have a big impact on your retirement plans. Here’s what you can do to stay ahead:
- Plan Smart: Deciding when to start Social Security isn’t just about age—it’s about your health, financial needs, and long-term goals. A financial advisor can help you weigh the pros and cons of early versus delayed benefits.
- Stay Updated: The Social Security Administration often updates policies and benefit calculations. Make it a habit to check their official website or speak with an SSA representative to get personalized advice.
The upcoming change to the Full Retirement Age is a reminder of how important it is to stay informed about Social Security. Whether you’re just starting to think about retirement or already making plans, understanding the rules is the key to maximizing your benefits.
