For decades, Americans believed that hitting age 65 marked the beginning of full retirement. But as of May 2025, that assumption is outdated. The Social Security Administration (SSA) now sets 66 years and 10 months as the full retirement age (FRA) for anyone born in 1959. And for those born in 1960 or later, the FRA has officially increased to 67 years.
This seemingly minor shift is creating major ripples in retirement planning across the country. If you’re planning to claim benefits soon, it’s crucial to understand what this means for your monthly income—and your long-term financial well-being.
Why the Full Retirement Age Is Increasing
The retirement age is gradually rising to reflect longer life expectancy and the need to preserve the Social Security trust fund. Back in the 1930s, most people didn’t live much past 65. Now, many retirees collect benefits for 20+ years, placing immense strain on the system.
By pushing the full retirement age to 67, the SSA aims to ensure long-term solvency while encouraging later retirement planning.
Can You Still Retire at 62 in 2025?
Yes, you can still retire at 62, but with a permanent benefit reduction. If your FRA is 67 and you retire at 62, your monthly Social Security check could be reduced by up to 30%.
This reduction remains in place for life, which makes early retirement risky if you lack other income sources or have a long life expectancy.
What If You Delay Retirement Beyond FRA?
Delaying benefits beyond your full retirement age can significantly boost your income. For every year you delay after reaching your FRA, your benefit increases by about 8%, up to age 70.
For example:
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FRA: 66 years and 10 months
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Delaying until age 70 = ~32% higher monthly payment
This is a powerful strategy for those in good health with other income streams, as it provides larger lifetime benefits.
Working Past Full Retirement Age? Here’s the Good News
If you continue working after reaching your full retirement age, your Social Security benefits will not be reduced, no matter how much you earn.
This is a major shift from retiring early, where earned income above a threshold can reduce your benefit temporarily.
So if you enjoy your work or want to build more financial cushion, you can work stress-free while collecting 100% of your Social Security benefits.
What to Consider Before Claiming Benefits in 2025
Before deciding when to claim Social Security, ask yourself:
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Do I have other retirement income or savings?
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What is my current health status and family longevity history?
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Can I afford to delay benefits to receive a higher payout?
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Do I plan to continue working part-time?
Use SSA’s online retirement estimator tool, and speak with a certified financial advisor to assess your claiming strategy.
FAQs
What is the full retirement age in 2025 for people born in 1959?
It’s 66 years and 10 months. For those born in 1960 or later, it’s 67.
Can I still retire at 62 in 2025?
Yes, but your benefits will be permanently reduced—by as much as 30% if your FRA is 67.
How much more will I receive if I delay benefits until age 70?
Your monthly payment could increase by up to 32%, depending on your FRA.
Will my benefits be reduced if I work after my FRA?
No, there are no benefit reductions after reaching full retirement age, no matter how much you earn.
Is this change part of the Social Security Fairness Act?
No. The FRA increase is separate and based on previous SSA legislation and actuarial adjustments.
When should I start taking Social Security?
It depends on your personal financial situation, health, and retirement goals. Consider all income sources before choosing.
What happens if I apply early and keep working?
Your benefits may be temporarily reduced if your earnings exceed the annual limit until you reach FRA. After that, no reduction applies.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.