Suppose you were planning to retire with all your obligations settled and your affairs in order. However, there is one change that you would be absolutely wrong to just let it pass. As of 2025, the full retirement age (FRA) for Social Security benefits has risen again. People born in 1959, the FRA is now 66 years and 10 months, and it was 66 years and 8 months in 2024.
If you are not careful, claiming too early could possibly decrease the benefit to your monthly check the resultant effect being a permanent one hence you would not be able to claim anything in the future.
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Here’s what’s important for you to be aware of—and the place of this update in the grand scheme of things with respect to retirement planning in the U.S.
Why Is the Retirement Age Increasing?
The new FRA is not the result of something that just happened. It is what was planned and agreed upon gradually by Congress with the Social Security Amendments of 1983. The amendments were meant to change the age from 65 to 67 in a few steps lasting over many years.
CBS News states the goal of the change is to keep the Social Security program financially stable as people live longer and collect benefits for more years. What are your thoughts on that?
Every year from 1955 to 1960, the FRA increased by two months. Therefore, this is the detail of that change:
- 1958-born individuals had their FRA set at 66 years and 8 months
- 1959-born individuals saw the FRA moving to 66 years and 10 months
- Those born in or after 1960 should claim at 67
What Happens If You Claim Benefits Early?
You can still start claiming Social Security as early as age 62. The only problem with it is that you will be sacrificing more of your monthly payment permanently if you start before your full retirement age.
For example, as The Statesman states someone who was born in 1959 and claimed at age 62 could be looking at a benefit cut of up to 30%.
This means that if your full monthly benefit at FRA is $1,800, and you claim early, it may decrease to about $1,260 per month for the rest of your life.
What If You Delay Beyond Your Full Retirement Age?
On the other hand, postponing the receipt of benefits beyond the full retirement age will lead to the rise of your monthly check. Thus, the SSA provides delayed retirement credits which will raise your benefits around 8% per year you wait, up to age 70.
Like let’s say you are 66 and 10 mos. old when you reach FRA, and you wait until 70 to claim, so the delay in your benefit payments would make it possible for your monthly benefit to be a lot bigger than if you claimed at FRA.
For more details on delayed credits, you can visit the SSA’s official FAQ page.
Why Does This Matter Now?
If the FRA were to increase this year, it would remind us that it is even more important to be cautious when deciding the right time for you to leave work. It is a potential mistake that may lead to a lower income level throughout your retired life.
For anyone who turns 62 this year and is looking at taking early retirement, take time to see how the new FRA may affect your overall lifetime benefit. If you retire early and then live another twenty, thirty more years, the smaller sum that you got monthly will add up anyway.
How to Verify Your Full Retirement Age and the Amount of Your Benefits
To learn your exact full retirement age and the amount of your benefit, you are best served if you use the calculators featured on the official Social Security Administration website. Their retirement age calculator is helpful to know your period of full eligibility for benefits in the article of your birth year.
Alternatively, you can access your my Social Security account and get displayed your earnings history and personalized benefit estimates.
On the surface, the rise in the retirement age might seem like a small matter, but in the long term, it could actually make a considerable impact on your financial situation. For instance, in 2025, people born in 1959 should then wait till they reach 66 years and 10 months to get full Social Security benefits. Going with an earlier claim would consequently result in a reduced monthly payout.
The growing complexity of retirement planning makes it more critical to stay informed so you can make the most effective decisions for your future. Always remember to ask for help and guidance from the authorized office of the government, such as SSA.gov before you select your retirement date.
To remain updated with changes in Social Security rules, retirement trends, and eligibility regulations, feel free to bookmark our section dedicated to Retirement & Finance.
