In 2025 changes to Social Security may impact retirement planning. Understanding these adjustments is crucial for making informed decisions about when to claim benefits.
Full Retirement Age (FRA) Adjustments
Starting in 2025, the full retirement age (FRA) will rise to 66 years and 10 months for those born in 1959. For individuals born in 1960 or later, the FRA will be 67 years. This gradual increase reflects the growing life expectancy of Americans and aims to ensure the system’s long-term solvency.
Claiming Benefits Early
You can start receiving Social Security benefits as early as age 62, but doing so could reduce your monthly payout by up to 30%. Conversely, delaying benefits until after your FRA could increase your monthly benefit by 8% per year until you turn 70. This means waiting could result in a 32% higher monthly benefit by age 70 compared to claiming at FRA.
Conclusion
With Social Security rules changing, it’s important to plan ahead. Whether you’re already eligible or a few years away from retirement, understanding the new FRA and how it impacts your benefits will help you make the best financial decisions. Consulting with a financial expert and adjusting your retirement strategy now could mean a bigger payout later.
Source Article:
Cancio, G. (2025). What the 2025 Social Security Age Change Means for Your Retirement Planning. Investopedia.