Many Americans still believe that the standard retirement age is 67, but that’s no longer the full picture. In 2025, the official Social Security full retirement age (FRA) is going to increase again, affecting millions of older workers planning for retirement.
This change is part of a long-term plan to adjust Social Security benefits based on longer life spans and changing economic needs. If you’re nearing retirement or helping someone who is, it’s important to understand what these changes mean and how they could affect future benefits.
What is Full Retirement Age (FRA)?
Full Retirement Age (FRA) is the age when people can start collecting full Social Security benefits based on their work history and income. While you can start taking benefits as early as age 62, doing so means you’ll receive a smaller amount for life. The longer you wait (up to age 70), the higher your monthly benefit becomes.
A Look Back: Why the Retirement Age Changed
Originally, the FRA was 65 for everyone. But in 1983, the U.S. Congress changed that rule. They decided to raise the FRA gradually to help keep Social Security financially stable. The idea was simple: people were living longer, so they’d be collecting benefits for more years. To balance that, the age to receive full benefits had to go up.
Since then, the FRA has been increasing slowly — two months at a time — based on when someone was born.
Social Security Retirement Age History
| Year of Birth | Full Retirement Age (FRA) | Notes |
|---|---|---|
| 1937 or earlier | 65 | Original retirement age set by SSA |
| 1938 | 65 and 2 months | Start of gradual increase |
| 1939 | 65 and 4 months | |
| 1940 | 65 and 6 months | |
| 1941 | 65 and 8 months | |
| 1942 | 65 and 10 months | |
| 1943–1954 | 66 | New standard FRA for these birth years |
| 1955 | 66 and 2 months | Gradual increase toward age 67 |
| 1956 | 66 and 4 months | |
| 1957 | 66 and 6 months | |
| 1958 | 66 and 8 months | |
| 1959 | 66 and 10 months | Applies for those retiring in 2025 |
| 1960 or later | 67 | Final phase of increase completed |
What’s New in 2025?
Starting in 2025, people born in 1959 will have to wait until they are 66 years and 10 months old to claim full benefits. This is a two-month increase from the previous group (born in 1958), who reached their FRA at 66 years and 8 months.
So, if you were born in 1959, you’ll reach your full retirement age in November 2025.
Can You Claim Social Security Early?
Yes, you can start taking Social Security benefits at age 62. But there’s a big catch: your monthly benefit will be about 30% less than if you waited until your FRA. Many people choose this option if they need income early, but it’s a permanent reduction that lasts for the rest of your life.
Even claiming just a few months early can reduce your benefits, though the cut is smaller than at age 62. Waiting until FRA—or even until age 70—can make a big difference.
Why Waiting Can Pay Off
Here’s an example: In 2024, someone who claims Social Security at FRA could get a maximum benefit of $3,822 per month. But if they start at age 62, they’d only get around $2,710 per month. That’s a big drop over time.
If someone waits until age 70, their benefits can increase by about 25%, offering better financial security during retirement. However, only about 4% of people delay their claims until 70.
2025 Cost-of-Living Adjustment (COLA)
Each year, Social Security payments are adjusted for inflation. This is known as the cost-of-living adjustment (COLA). In 2025, the COLA is set at 2.5%, the smallest increase since 2021 due to cooling inflation. The new COLA will begin with payments made in January 2025.
Who Will Be Affected?
The biggest impact will be on the youngest baby boomers and older Gen Xers. People born in 1960 or later will have to wait until they are 67 years old to receive full benefits. That means someone born in January 1960 won’t qualify for full Social Security until January 2027.
Retirement Savings Concerns
Many younger boomers and Gen Xers are entering retirement without enough savings. A recent study found that about 1 in 3 younger boomers will depend on Social Security for 90% or more of their income by age 70. But Social Security is only designed to replace about 40% of a person’s working income.
Gen X is also struggling. The average Gen X household has only around $150,000 in savings, while experts suggest people need about $1.5 million to retire comfortably. Alarmingly, 40% of Gen Xers have no retirement savings at all.
The increase in the Social Security full retirement age in 2025 is a small change—but it could have a big impact on your retirement planning. If you were born in 1959, you now have to wait until you’re 66 years and 10 months old to get full benefits. Claiming early means a permanent cut in your monthly payments, while waiting longer can boost your income in the long run.
With many Americans underprepared for retirement, especially Gen X and younger boomers, understanding these rules is more important than ever. Planning smartly now could make your retirement years much more secure and stress-free.
FAQ
What is the full retirement age in 2025?
In 2025, the full retirement age (FRA) for people born in 1959 will increase to 66 years and 10 months. This means they can start receiving full Social Security benefits from November 2025.
Can I still claim Social Security benefits at 62?
Yes, you can claim Social Security at age 62, but your monthly benefit will be permanently reduced by about 30% compared to waiting until your full retirement age.
Why is the retirement age increasing again?
The retirement age is increasing as part of a plan passed by Congress in 1983 to keep Social Security financially stable, considering people are living longer.
What is the maximum Social Security benefit in 2024 and 2025?
In 2024, the maximum monthly benefit at full retirement age is $3,822. In 2025, this may increase slightly due to the 2.5% cost-of-living adjustment (COLA).
How much is the 2025 Social Security COLA?
The 2025 cost-of-living adjustment (COLA) for Social Security recipients is 2.5%, the lowest increase since 2021 due to slowing inflation.
What happens if I delay Social Security until age 70?
If you delay claiming Social Security until age 70, your benefits could increase by around 25% compared to your full retirement amount, maximizing your monthly payments.
