If you’re planning to retire soon—or even just thinking about it—there’s an important change you need to know about. Starting in 2025, the official full retirement age for Social Security will increase to 67 for anyone born in 1960 or later.
While that number may sound small, it has big implications for when you can collect your full benefits and how much money you’ll receive each month. For many Americans, especially those approaching their early 60s, this shift could impact retirement planning in major ways.
Why the Retirement Age Is Changing
This isn’t a sudden decision. Back in 1983, Congress passed a law that gradually raised the full retirement age over several decades. At the time, the system was under financial strain, and people were living longer. Raising the age slowly was a way to help keep Social Security sustainable without slashing benefits outright.
Fast forward to now, and that final step is kicking in: anyone born in 1960 or later will have to wait until age 67 to collect their full Social Security benefits. In the past, many Americans were eligible for full benefits at 66—or even 65 for earlier generations.
Can You Still Retire at 62?
Yes, you can still start collecting Social Security as early as age 62. But here’s the catch: if you claim early, your monthly benefit will be permanently reduced.
Let’s say you were born in 1960 and decide to claim Social Security at 62. You’d only receive about 70% of your full benefit. That means if you were entitled to $1,500 a month at full retirement age, you’d only get around $1,050 if you claimed early.
Now, if you wait until 67, you’d get the full $1,500. And if you wait all the way until 70, you could receive as much as $1,860 per month thanks to delayed retirement credits—an extra 8% for every year you delay past 67.
So What Should You Do?
There’s no one-size-fits-all answer. Some people need the income at 62 to cover living expenses or healthcare. Others might be healthy enough to keep working a few more years and let their benefits grow.
Here are a few things to consider:
-
Your health: If you’re in poor health or have a shorter life expectancy, claiming earlier may make sense.
-
Your finances: If you’ve saved enough and don’t need the extra monthly income just yet, waiting could boost your overall lifetime benefit.
-
Your job situation: If you’re still working and earning a decent income, you might want to delay benefits to avoid reductions and penalties for early claimers who keep working.
Talking to a financial advisor or using the Social Security Administration’s online tools can help you figure out what’s best for your situation.
What About People Already Receiving Benefits?
If you’re already receiving Social Security, this change won’t affect you. The new retirement age only applies to people born in 1960 or later who haven’t started collecting benefits yet.
Still, the shift is a wake-up call for younger workers. As Social Security faces long-term funding challenges, there’s ongoing debate about whether more changes could be ahead.
What Happens If You Wait?
Delaying your claim beyond full retirement age can pay off. For each year you wait after 67 (up to age 70), your monthly check will grow by about 8%. That may not sound like much, but over the course of 10, 15, or 20 years of retirement, it can add up to tens of thousands of dollars.
It’s not the right move for everyone, but it’s something to keep in mind—especially if you’re still working or don’t urgently need the extra income yet.
Final Thoughts
The change to the retirement age in 2025 isn’t meant to catch you off guard—it’s part of a long-term plan that’s finally taking full effect. But for many Americans, it will be the first time they feel the impact.
Whether you’re on the cusp of retirement or still a few years away, it’s more important than ever to understand your options, know the numbers, and make a plan that works for your life.
Retirement should be a time to relax and enjoy the years you’ve worked so hard for. With the right information, you’ll be better equipped to make sure Social Security plays a strong part in that future.