Many Americans think of 65 as the standard retirement age, but Social Security’s full retirement age (FRA) has already surpassed that mark—and it’s set to rise even further in 2025.
The FRA determines when workers can claim their full Social Security benefits, which are based on their work history and earnings. The higher one’s income and the longer they work, the larger their benefit payouts will be upon retirement, CBS News reported.
This gradual increase in the FRA traces back to a 1983 decision by Congress, which aimed to account for Americans’ increasing life expectancy. Originally set at 65, the FRA has been increasing by two months for each successive birth year. For example, those born in 1957 reached their FRA at 66 years and 6 months in 2023. People born in 1958 will need to reach 66 years and 8 months to claim full benefits, beginning in September 2024.
The latest increase will affect those born in 1959, whose FRA will rise to 66 years and 10 months. This adjustment means individuals in this bracket can start claiming their full benefits in November 2025. The Social Security Administration provides online tools to help calculate the exact timing of full benefit eligibility, depending on one’s birth year.
For those who choose to retire earlier, Social Security benefits are reduced. Conversely, delaying benefits beyond the FRA can increase monthly payouts. For example, benefits grow by 8% per year if claimed after the FRA, up until age 70. This flexibility allows retirees to strategize based on their financial needs and life expectancy.
Experts advise that workers nearing retirement carefully consider the timing of their Social Security claims. Factors like health, other retirement savings, and anticipated expenses should influence this decision. Understanding these FRA changes can help retirees maximize their income during their post-working years. With ongoing adjustments, retirement planning is becoming more complex yet crucial for long-term financial security.