The Social Security Administration (SSA) is gradually increasing the full retirement age (FRA) for Americans born in 1960 or later. This means those turning 65 in 2025 must wait until they are 67 to receive their full Social Security benefits. The change is part of a series of adjustments implemented by the Social Security Amendments of 1983.
These amendments addressed the program’s financial solvency issues and accounted for longer life expectancies. Americans can still choose to retire as early as 62, but doing so will result in a reduced monthly benefit. For example, someone who qualifies for a $1,000 monthly benefit at age 67 would only receive $700 per month if they retire at 62.
Conversely, delaying retirement until age 70 can increase monthly payments by up to 24 percent. The FRA varies depending on the year an individual was born.
Retirement benefits adjustments under the SSA changes
Those born between 1943 and 1954 can retire with full benefits at age 66. The FRA for those born in 1957 is 66 years and six months, while for those born in 1958, it is 66 years and eight months. The increase to age 67 is the last scheduled change under the 1983 amendments.
However, future adjustments may still occur. In March, the House Republican Study Committee proposed increasing the retirement age to address the program’s impending insolvency. The Social Security Board of Trustees projects that the trust fund for retirement benefits could be depleted between 2033 and 2034, after which the system could only pay out 77 percent of scheduled benefits.
As lawmakers continue to debate how to handle this looming crisis, Americans nearing retirement age should be aware of the current changes and plan accordingly. Those who can afford to delay claiming benefits may find it advantageous, while others may need to adjust their retirement strategies to account for the increased FRA.
