You may think that the standard retirement age is 65 years old. While that belief is widely held, the full retirement age (FRA) for Social Security is actually a bit older than that. In 2025, the FRA is increasing once again. For Baby Boomers and Gen Xers, this change might impact their ability to fully retire this year.
What is the FRA?
Social Security’s FRA refers to when workers are able to start claiming their full SS benefits. The FRA is based on the number of years they worked and their income during their working years. Ultimately, the longer someone is in the workforce, the more they can receive from Social Security when they decide to claim their benefits.
At one point in time, the FRA was 65. In 1983, the retirement age went up to account for longer life expectancy in the United States. Since then, the FRA has been going up in two-month increments, based on a person’s birth year. For individuals born in 1957, the retirement age is 66 years and 6 months old (or starting in 2023). People born in 1958 have an FRA of 66 years and 8 months (September 2024).
Now, the FRA is set to increase yet again for people born in 1959.
Social Security’s New FRA
For those born in 1959, the full retirement age is set to increase by two months. It will be 66 years and 10 months, which goes into effect in 2025. People born in 1959 will be able to start qualifying for their full benefits in November 2025.
That said, there is some flexibility when it comes to claiming your Social Security benefits. Anyone can claim once they are 62 years old. However, if you choose to claim your SS benefits before the FRA, you will receive a reduced benefit and it will remain that amount for the rest of your retirement. So, if you start claiming at 62 and your benefits are about 30% less than what your full benefit would be, that will be how much you receive throughout retirement. The Social Security Administration pointed out that someone retiring at their FRA in 2024 could get a maximum monthly benefit of $3,822. Someone retiring at 62 would receive a max benefit of $2,710.
Surprisingly, many Americans opt to retire at 62 anyway. Some workers are forced into retirement and others think it makes more sense to claim more years of guaranteed retirement income, even if it is technically less than the full benefit.
How to Handle the Latest FRA Increase
The latest FRA increase isn’t anything new. However, it could surprise some older people in the workforce. Claiming just one month earlier than your full retirement age will result in a reduction of your benefits. Ultimately, it may be worth waiting until your FRA so that you can claim your maximum benefit and not have to worry about anything in retirement.
If you’re curious about when you’ll be able to receive your full benefits, check out this calculator on the Social Security Administration website.
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