A quiet but important shift is happening in 2025: the full retirement age for Social Security is increasing again. If you were born in 1959, the change affects you directly—and if you were born in 1960 or later, you’re next.
Here’s what this change means for your benefits, your retirement plans, and your bottom line.
Your full retirement age (FRA) is the age at which you’re eligible to receive your full, unreduced Social Security retirement benefits. While many people still assume FRA is 65, that’s no longer the case.
In 1983, Congress passed legislation to gradually raise the retirement age due to longer life expectancies. The FRA has been increasing slowly ever since.
For example:
Starting in November 2025, Americans born in 1959 will hit their new full retirement age: 66 years and 10 months.
This is part of the final step in the multi-decade rollout that began in the 1980s. After this change, only one increase remains—bringing FRA to 67 years for those born in 1960 and beyond.
If you’re turning 66 this year and planning to claim, be aware: you may need to wait several additional months to avoid a reduced benefit.
Yes. The earliest you can start receiving Social Security retirement benefits is age 62, but it comes with a permanent reduction—about 30% less than if you had waited until your full retirement age.
This trade-off can make sense for those retiring early due to health issues, layoffs, or personal preference. But it’s important to understand that claiming before your FRA locks in that lower benefit for life.
Even claiming a few months early—say, at 66 and 9 months instead of 66 and 10—results in a slightly smaller monthly payment.
The Social Security retirement age is rising because people are living longer and drawing benefits for more years. According to the Social Security Administration, the law passed in 1983 aimed to maintain the program’s long-term stability as longevity improved.
This change affects:
Let’s compare the impact of timing:
Despite these incentives, only 4% of retirees wait until 70 to maximize benefits, according to the Transamerica Center for Retirement Studies.
The final shift to FRA 67 will mostly affect younger boomers and Gen Xers—two groups struggling with savings.
With Social Security designed to replace only about 40% of your income, these numbers highlight a looming retirement crisis.
Whether you’re already eligible or still planning for retirement, here are key action steps:
Retirement age change 2025: What it means for your Social Security benefits
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
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