There’s going to be a big change to the Social Security retirement age in 2025. This change applies to people who will soon qualify to collect 100% of their retirement benefits, though. Let’s explore what this change is and what it means for you.
What is the Full Retirement Age (FRA)?
Full retirement age (FRA) is the age when you may claim the full amount of your retirement benefit based on your lifetime earnings. The age had been 65, but it was raised under a law enacted by Congress in 1983. This adjustment was introduced to recognise the increased life expectancy.
FRA Increase Details
As we will see, in 2025, the FRA will continue to rise. Here are some key points:
- Those born in 1958: Due for FRA when 66 years and 8 months old.
- People born in 1959: FRA will rise to 66 years and 10 months.
- Individuals born in 1960 or later: FRA will be 67 years
Retirement Age by FRA
| Birth Year | Full retirement age | Payouts if benefits are taken at age 62 |
| 1943-1954 | 66 | $750 |
| 1955 | 66 and 2 months | $741 |
| 1956 | 66 and 4 months | $733 |
| 1957 | 66 and 6 months | $725 |
| 1958 | 66 and 8 months | $716 |
| 1959 | 66 and 10 months | $708 |
| 1960 and later | 67 | $700 |
Benefit Taking Flexibility
You can begin to get your retirement benefit early, as early as age 62, but with this option you will get an amount that is less. For example, if you take benefits at age 62, you’ll get about 30% less of your full benefit.
Other Social Security changes
There also will be some other major changes in 2025:
- Cost-of-living adjustment: Dropped from 3.4% to 2.5%.
- Maximum taxable income: Up from $168,000 to $176,100.
- Appointment-based services at the offices of Social Security.
Learn here- are two big social security changes for retirees in 2025
Impact on young boomers and Gen Xers
Although these changes will affect everyone, they will hit young boomers (1959-1965) and Gen Xers (1965-1980) particularly hard. Many members of these groups are, according to recent research, failing to save sufficiently for their retirement.
For example:
Younger boomers: Roughly one in three of these individuals will depend on Social Security for 90% of their retirement income.
Gen X: You’ve got $150,000 on average saved, whereas you need about $1.5 million for a comfortable retirement.
FAQs
What will the full retirement age (FRA) be in 2025?
If you were born in 1958, your FRA will be in 2025 and will be at 66 years and 8 months. As an example, if you were born in 1959, your FRA will be 66 years and 10 months. FRA will also rise to 67 for those born in 1960 or later.
At age 62, can I start receiving Social Security benefits?
You can start receiving Social Security benefits at 62, yes. But be aware that in that case, you will get roughly 30 percent less than your entire benefit. This is an important decision, so make one that is thoughtful and grounded in your financial situation.
The final words
For many people, this Social Security retirement age change could be major. You need good planning so that you can enjoy your golden years. Take note no matter how early or late you wish to capitalize on the perks your financial readiness will preserve your future.