With a tender and heartfelt embrace, we lovingly invite cherished individuals nearing retirement to gently explore the Full Retirement Age (FRA) for Social Security, especially as radiant changes unfold in 2025. For those born in 1960 or later, your FRA will lovingly rest at 67, a shift that may softly shape when and how much you receive in benefits.
This sacred moment empowers you with understanding, weaving clarity to make compassionate choices about when to embrace your Social Security benefits and how to nurture the fullest monthly payments. Together, we unite in fostering a nurturing community where every retiree feels profoundly valued, supported, and uplifted with boundless hope, dignity, and love for their radiant retirement journey.
Social Security’s Full Retirement Age Changes
| Key Fact | Details |
|---|---|
| Full Retirement Age (FRA) for those born in 1960 | 67 years old |
| Early retirement at 62 | Benefits reduced by up to 30% for early retirement |
| Delayed retirement benefits at age 70 | Benefits increase by 8% per year for delayed claims |
| Maximum monthly benefit at FRA (67) | Approx. $3,701 per month for average workers |
| Maximum monthly benefit at 70 | Approx. $4,924 per month for average workers |
| Income thresholds for working while receiving Social Security | $21,240 (under FRA) and $56,520 (in the year you reach FRA) |
The changes to Social Security’s Full Retirement Age in 2025 are an important factor in planning your retirement. If you were born in 1960 or later, your FRA will be 67, and delaying your benefits until age 70 can significantly increase your monthly payments. Whether you decide to claim benefits early, at FRA, or at age 70, understanding the impact of these decisions is critical to your long-term financial well-being.
Take the time to carefully consider your options and consult with a financial planner if needed to ensure you’re making the most informed decision about your Social Security benefits.
What Is Full Retirement Age (FRA)?
Understanding Full Retirement Age (FRA)
The Full Retirement Age (FRA) is the age at which you are eligible to begin receiving your full Social Security benefits, based on your earnings history. If you claim benefits before your FRA, your benefits will be permanently reduced. If you wait past your FRA, your benefits will be increased, making it important to carefully evaluate when to start receiving your Social Security benefits.
For those born in 1960 or later, Full Retirement Age will be 67. This means that if you were born in 1960 or later, you’ll have to wait until 67 to receive full benefits. For individuals born before 1960, your FRA may be 66 or a few months beyond, depending on the exact year of birth.
Why the Shift to Age 67?
The FRA has gradually increased as part of efforts to ensure the Social Security system’s sustainability. As life expectancies have increased over the decades, lawmakers have shifted the FRA to reflect the reality that people are living longer and working longer. This change means people need to be financially prepared for a longer retirement period and are incentivized to stay in the workforce longer, which helps the Social Security system remain viable.
How the 2025 Changes Impact Your Benefits
New Full Retirement Age for 1960-born Individuals
Starting in 2025, those born in 1960 or later will see their Full Retirement Age set at 67. This means if you were born in 1960, you will need to wait until age 67 to receive your full Social Security benefits. If you plan to retire earlier than that, you will see a reduction in the amount you receive each month.
For example:
- If your full benefit at age 67 is $2,000, starting at age 62 would reduce your monthly benefit to $1,400, a 30% reduction.
- If you wait until age 70, you’ll receive $2,400 per month, an increase of 20%.
Impact of Delaying Social Security Benefits
Delaying your Social Security benefits is one strategy for maximizing your monthly payments. For every year you delay your benefits after your Full Retirement Age, you’ll receive an 8% increase in your monthly benefit, up to age 70. This could result in significant higher monthly payments over time, especially if you expect to live longer than average.
Example of Delaying Benefits
If your monthly benefit at age 67 is $2,000, by waiting until age 70 to begin claiming, you will receive $2,400 per month. That’s an additional $400 every month, which can add up to an extra $4,800 per year.
The Impact of Inflation and COLA Adjustments
How Inflation Affects Your Social Security Benefits
As we all know, inflation impacts the cost of living, and Social Security benefits are designed to keep pace with that. The Cost-of-Living Adjustment (COLA) is an annual increase to Social Security benefits, intended to help beneficiaries keep up with inflation. For example, in 2023, COLA increased benefits by 8.7%, the largest jump in over four decades.
While COLA increases can help maintain your purchasing power, they are not guaranteed to match inflation exactly every year. In 2025, if inflation continues to rise, beneficiaries could see another COLA adjustment, which would further help to maintain the real value of benefits over time.
Social Security and Taxes
How Taxes Can Impact Your Social Security Benefits
Social Security benefits can be subject to taxes, depending on your total income. If you are receiving Social Security benefits and also have other sources of income—like a pension, salary, or investments—some of your Social Security benefits may be taxed.
In 2025, if your combined income (which includes Adjusted Gross Income (AGI), nontaxable interest, and half of your Social Security benefits) exceeds $25,000 (individuals) or $32,000 (married couples), you may have to pay federal income taxes on your benefits.
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Social Security Benefits for Spouses
Social Security also provides benefits for spouses. If your spouse earned more than you during their working years, you might be entitled to spousal benefits. This can be up to 50% of your spouse’s FRA benefit, depending on when you begin claiming.
For example:
If your spouse is eligible for $2,000 per month at their FRA, you could receive up to $1,000 per month if you qualify for spousal benefits. In many cases, divorced individuals may also qualify for spousal benefits based on their ex-spouse’s record, provided they were married for at least 10 years.
Estimate Your Social Security Benefit
To get a clear idea of what your Social Security benefits will look like, it’s important to use the Social Security Statement, which shows an estimate based on your lifetime earnings. You can access this statement by logging into your My Social Security account on the official website.
FAQs
When is the Full Retirement Age for Social Security?
For people born in 1960 or later, the Full Retirement Age (FRA) is 67. For those born before 1960, FRA is between 66 and 67, depending on the year.
How does working impact my Social Security benefits?
If you work while receiving Social Security benefits before your FRA, your benefits may be reduced based on how much you earn. However, once you reach your FRA.
Can I claim Social Security benefits early?
Yes, you can claim Social Security benefits as early as age 62. However, your monthly benefit will be permanently reduced by up to 30% if you claim before your Full Retirement Age.
Is it better to delay Social Security benefits?
If you can afford to wait, delaying benefits until age 70 will result in higher monthly payments, as your benefit increases by 8% per year for each year you delay after your Full Retirement Age.
