The SSA has changed the full retirement age
The Social Security Administration (SSA) has been gradually increasing the full retirement age (FRA). As of May 2025, retirees will continue to feel the impact as it alters their plans for the future. For those who do not know, the FRA is the age at which American retirees can receive 100% of their Social Security retirement benefits. The SSA is increasing the FRA to guarantee the long-term financial upkeep of Social Security, especially as life expectancy is continuously rising.
Social Security was initiated in 1935, during which the average life expectancy was approximately 61 years. At the moment, the average life expectancy is closer to 79 years. Amendments were made in 1983, which highlighted a gradual increase in the FRA from 65 to 67, which had to be implemented over decades. The increase in the FRA is intended to reflect the US demographic and economic changes. By understanding how the year of birth will affect you and your retirement decisions, you can plan a stable and supportable retirement.
Your age impacts the total monthly benefit you will receive
Some people can retire as early as age 62, but by doing so, they inevitably reduce their monthly Social Security benefits. Some experts would advise people to consider delaying claiming benefits even beyond the FRA. For example, if 62 is below your correct FRA, then you could be reducing your monthly benefits by almost 29.17%. On the contrary, if you delay retirement long after your FRA, your monthly benefit will increase.
The reason for this is due to the “delayed retirement credits,” which grow monthly benefits by nearly 8% for every year retirement is delayed, up until age 70. Economists have hinted that healthy individuals receive higher benefits on average when they delay until the age of 70.
Retirement planning in 2025:
- Review your history in the “My Social Security” account for personalized forecasts.
- Decide on healthcare coverage when retiring before qualifying for Medicare at 65.
- Assess your tangible financial needs in retirement.
- Seek advice from a financial advisor for benefit boosts and savings strategies.
- Wait until the new FRA to claim 100% benefits.
This is the new full retirement age to claim 100% benefits
In May 2025, the new changes to the FRA will be applicable. Individuals who were born in 1959 will reach their FRA of 66 years and 10 months this year, marking another key milestone in the gradual changes introduced by the 1983 amendments to the Social Security Act. This highlights that, depending on their birth month, individuals turning 66 in 2025 will reach their FRA between March 2025 and January 2026.
According to the Social Security information on Full Retirement Age, depending on the year of birth, these are the adjustments that have been gradually introduced in summary:
- 1955: 66 years, 2 months
- 95.6% of individual benefits; 47.2% of spousal benefits
- 1956: 66 years, 4 months
- 96.7% of individual benefits; 47.9% of spousal benefits
- 1957: 66 years, 6 months
- 97.8% of individual benefits; 48.6% of spousal benefits
- 1958: 66 years, 8 months
- 98.9% of individual benefits; 49.3% of spousal benefits
- 1959: 66 years, 10 months
- 100% of individual benefits; 50% of spousal benefits
The only constant in life is change. As the FRA gradually increases, your plans for the future do not have to be bleak. Understanding how your year of birth and the age at which you start claiming inevitably impact your monthly benefits will help you enjoy a safe and secure retirement.