Many Americans think of 65 as the standard retirement age, but the “full retirement age” (FRA) for Social Security is older, and it will increase again in 2025. The FRA is when workers can claim their full benefits based on how long they’ve worked and their earnings.
Generally, the more years and higher income someone has, the more they can receive from Social Security.
The FRA used to be 65, but Congress raised it in 1983 to reflect longer life expectancies. Since then, the FRA has been increasing by two months for each birth year. For example, people born in 1957 reached their FRA at 66 years and 6 months, starting in 2023. Those born in 1958 will hit their FRA at 66 years and 8 months, beginning in September 2024.
In 2025, the FRA will increase to 66 years and 10 months for people born in 1959. They will be eligible for their full benefits starting in November 2025. You can check when you’ll get your full benefits on the Social Security Administration’s website.
You can claim Social Security benefits as early as 62. However, doing so means you’ll receive a reduced benefit for the rest of your retirement. For example, claiming at 62 results in about 30% less than your full benefit.
Many older Americans choose to claim early because they may have to retire sooner than expected or prefer more years of guaranteed income, even if it’s less.
This change in the retirement age may surprise some workers. Claiming even a month before your FRA will lower your benefits, but at a smaller rate than claiming at age 62. The difference between retiring at FRA and at 62 can be significant. For instance, someone retiring at FRA in 2024 could receive a maximum monthly benefit of $3,822, while someone who claims at 62 would get a maximum of $2,710.
Social Security benefits adjust each year to keep up with inflation so that recipients’ purchasing power remains steady. In 2025, the annual cost-of-living adjustment (COLA) will be 2.5%, which is the smallest increase since 2021 due to slowing inflation. Most Social Security beneficiaries will see this new COLA in their January payments.
For people born in 1959, this will be the second-to-last increase in the FRA. The last change will affect workers born in or after 1960, who won’t reach their FRA until they’re 67. For example, someone born in January 1960 must wait until January 2027 to claim their full retirement benefits.
Younger baby boomers and Gen Xers will feel this impact the most, as Gen X spans from 1965 to 1980. Research shows that many of these workers are not ready for retirement. Younger boomers, born between 1959 and 1965, are turning 65 this year, but many lack sufficient savings for retirement, according to the ALI Retirement Income Institute.
About one in three of these younger boomers will depend on Social Security for 90% of their retirement income when they are 70, but Social Security is meant to replace only about 40% of a person’s working income.
Gen Xers face a similar situation, with an average retirement savings of about $150,000—far below the $1.5 million many believe they need to retire comfortably. About 40% of Gen Xers have saved nothing for retirement.
Older Americans can increase their Social Security benefits by delaying their claims until they turn 70. Doing this can raise benefits by about 25% over full benefits. However, only about 4% of Americans wait until age 70 to claim the maximum Social Security benefit, according to a study by the Transamerica Center for Retirement Studies.
