Natalia
Retirement planning just got more important: the Social Security Administration (SSA) has officially raised the Full Retirement Age (FRA) again—notification confirmed August 2025—moving it beyond the long-standing standard of 65.
Here’s what you need to understand about how this impacts your benefit timing and financial future.
Timeline of Full Retirement Age Changes
| Birth Year | FRA (Full Retirement Age) |
|---|---|
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 and later | 67 years (effective in 2025) |
This gradual increase began with reforms in 1983 and has now culminated: those born in 1960 or later must wait until age 67 to receive full Social Security benefits.
What This Means for Claiming Benefits
- If you retire early—starting at age 62—expect your benefits to be about 30% lower than the full benefit amount.
- Conversely, delaying benefits past the FRA increases your monthly payout by approximately 8% per year, up to age 70.
Why the SSA Shifted the FRA
The primary reason behind raising the FRA is to help preserve the financial health of the Social Security system, especially given rising life expectancy and increasing retiree population.
By delaying payouts, the SSA can reduce strain on its Trust Fund.
Long-Term Proposals on the Table
Beyond the current hike, some policy proposals suggest increasing the FRA even further—to 69—between 2026 and 2033, as a measure to address upcoming shortfalls and potential insolvency of the system.
The SSA’s move to shift the Full Retirement Age to 67 in 2025 is a significant change for anyone born in 1960 or later.
It reinforces that age 65 is no longer the default for full benefits. Early claimers can expect reduced benefits; those who delay may benefit from larger payouts.
With further FRA increases possible in the future, smart retirement planning is more vital than ever.
FAQs
What is the new Full Retirement Age as of August 2025?
For individuals born in 1960 or later, the FRA is now 67, meaning full Social Security benefits begin at that age.
How much is the benefit reduced if I claim early at age 62?
Claiming at age 62 usually means receiving approximately 30% less per month compared to full benefits at FRA.
Can delaying benefits actually increase my monthly amount?
Yes—delaying benefits past the FRA can increase payouts by about 8% per year up until age 70.