As of May 2025, the Social Security Administration’s gradual increase in the Full Retirement Age (FRA) continues to impact Americans planning their retirement.
Individuals born in 1959 will reach their FRA of 66 years and 10 months during this year, marking a significant milestone in the phased adjustments initiated by the 1983 amendments to the Social Security Act.
Understanding Full Retirement Age (FRA)
The FRA is the age at which individuals are entitled to receive 100% of their Social Security retirement benefits. For those born in 1959, the FRA is 66 years and 10 months.
This means that individuals turning 66 in 2025 will reach their FRA between March 2025 and January 2026, depending on their birth month.
Here’s a breakdown of FRA by birth year:
| Birth Year | Full Retirement Age |
|---|---|
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960+ | 67 years |
Early vs. Delayed Retirement: Impact on Benefits
While you can begin claiming Social Security benefits as early as age 62, doing so will result in a permanent reduction in your monthly benefit amount.
For example, if your FRA is 66 years and 10 months and you choose to retire at 62, your benefits could be reduced by approximately 29.17%.
Conversely, delaying retirement beyond your FRA can increase your benefits. For each year you delay, up to age 70, your benefit increases by about 8%.
Here’s how early retirement can affect your benefits:
| Retirement Age | Benefit Reduction |
|---|---|
| 62 | ~29.17% |
| 63 | ~24.17% |
| 64 | ~19.17% |
| 65 | ~13.33% |
| 66 | ~6.67% |
| 66 years, 10 months (FRA) | 0% |
Why the FRA Is Increasing
The gradual increase in FRA was enacted to address the financial sustainability of the Social Security program in light of increasing life expectancies.
When Social Security was established in 1935, the average life expectancy was around 61 years. Today, it’s approximately 79 years.
The 1983 amendments to the Social Security Act set forth a plan to incrementally raise the FRA from 65 to 67 over several decades.
Planning for Retirement in 2025
If you’re approaching retirement in 2025, consider the following steps:
- Review Your Social Security Statement: Access your “my Social Security” account to verify your earnings record and get an estimate of your future benefits.
- Assess Your Financial Needs: Determine how much income you’ll need in retirement and how Social Security fits into your overall retirement plan.
- Consider Health Insurance: Remember that Medicare eligibility begins at age 65. If you retire before 65, you’ll need to plan for health insurance coverage until Medicare kicks in.
- Consult a Financial Advisor: A professional can help you navigate the complexities of retirement planning, including tax implications and investment strategies.
The changes to the Full Retirement Age reflect the evolving demographics and financial considerations of the Social Security program.
As you approach retirement, understanding how these changes affect your benefits is crucial. By planning ahead and making informed decisions, you can optimize your retirement strategy to ensure financial stability in your later years.
FAQs
Can I still retire at 62?
Yes, you can choose to retire at 62, but your monthly Social Security benefits will be permanently reduced compared to waiting until your FRA.
What happens if I delay retirement past my FRA?
Delaying retirement beyond your FRA can increase your monthly benefits by approximately 8% for each year you wait, up to age 70.
How does my birth year affect my FRA?
Your FRA depends on your birth year. For those born in 1959, the FRA is 66 years and 10 months. For those born in 1960 or later, the FRA is 67 years.