The Social Security Administration detailed the changes in the retirement age to receive full benefits.
- The Social Security Administration detailed the changes in the retirement age to receive full benefits.
- Currently, the “full retirement age” (FRA) varies by year of birth:
- Why can’t everyone retire at 65 with full benefits anymore?
- Delaying retirement has its rewards: here’s how you can earn more each month
- How to know when it’s best for you to take your retirement
In the United States, millions of workers approaching retirement age have a misconception: they believe that upon turning 65, they can automatically access 100% of their Social Security check.
The changes to Social Security in 2025 have continued to make headlines, even though it’s only May. This year marks one of the most significant changes: the increase in the retirement age to 67 for those born in 1960 or later.
This milestone, part of the gradual increase in the full retirement age (FRA), as outlined in the 1983 amendments to the Social Security Act, corresponds with a higher life expectancy and the need to maintain the program’s financial solvency.
The full retirement age is when individuals can receive 100% of their Social Security benefits.
This has been changing in increments of two months per birth year for those born from 1938 onward.
The age to access full Social Security retirement benefits in the United States continues to increase in a staggered manner, a change that was legislated in 1983 and affects the most recent birth cohorts. This is not a new law passed in 2024 or 2025, but rather the continuation of an established plan.
Currently, the “full retirement age” (FRA) varies by year of birth:
The full Social Security check is only granted if the person waits until the full retirement age, which varies by birth year:
- If you were born between 1943 and 1954, your retirement age is 66.
- For those born in 1958, the FRA is 66 years and 8 months.
- Those born in 1959 will reach their FRA at 66 years and 10 months, meaning this group will start reaching full retirement age during 2025 and 2026.
- For all individuals born in 1960 or later, the FRA is set at 67 years. This group will reach that age starting in 2027.
It is important to note that workers can choose to start receiving Social Security benefits as early as age 62. However, doing so before reaching full retirement age results in a permanent reduction in the monthly benefit amount. Conversely, delaying benefit collection beyond the FRA, up to a maximum of age 70, results in an increase in the monthly amount received.
While the current increase responds to decades-old legislation, there are active debates and proposals about the possibility of future increases in the retirement age. These discussions often arise in the context of ensuring the long-term financial sustainability of the Social Security system, considering factors such as increased life expectancy. Some proposals have suggested linking the retirement age to life expectancy or gradually raising it for younger generations. However, to date, no new legislative changes have been approved that alter the already established schedule of increases.
Why can’t everyone retire at 65 with full benefits anymore?
For decades, the concept of “retirement age” was clear. But demographic changes, such as increased life expectancy, have forced modifications to the rules.
Today, the Social Security Administration has established that the full retirement age is no longer the same for everyone. Retiring before the allowed age can be costly: a permanent reduction in the monthly benefit.
Full retirement age: the detail that determines how much you will receive
Delaying retirement has its rewards: here’s how you can earn more each month
Few people know that those who choose to delay their retirement beyond full retirement age can earn a bonus of up to 8% for each additional year, up to age 70. This means that if you wait until 70, your monthly check can be significantly higher. In 2024, the maximum amount that can be received exceeds $4,800 per month.
The difference between retiring at 62 and doing so at 70 can mean tens of thousands of dollars over your lifetime. Therefore, before making any decision, it is vital to know your exact retirement age and the financial consequences of doing so before or after that time.
How to know when it’s best for you to take your retirement
You can check your full retirement date on the official Social Security website or by creating a free account at my Social Security. From there, you can simulate how much you will receive if you decide to retire at 62, 67, or 70, and make an informed decision.
