Social Security’s full retirement age is increasing again in 2025: State Pensioners Must Know

Most people in the US believe that retirement starts at 65. But for Social Security benefits, the official full retirement age (FRA) is actually higher — and it’s increasing again in 2025. Many workers might not even realize that this change can affect how much money they receive in retirement.

Let’s understand what’s changing, who it affects, and how this impacts your retirement plans.

What Is Full Retirement Age (FRA)?

The Full Retirement Age is when you can start getting your full Social Security benefits. The exact age depends on when you were born. If you choose to claim earlier than your FRA, you will receive a smaller amount every month. If you delay, you can receive a higher amount.

Years ago, FRA was 65. But due to longer life expectancy, Congress changed the rules in 1983 to gradually increase the age.

What’s Changing in 2025?

The retirement age is increasing again for people born in 1959. Starting in November 2025, they will need to reach 66 years and 10 months to claim full benefits.

Here’s how it has been changing over the years:

People born in 1957: FRA was 66 years and 6 months (eligible in 2023)
People born in 1958: FRA is 66 years and 8 months (eligible in 2024)
People born in 1959: FRA will be 66 years and 10 months (eligible in 2025)

The last change will be for those born in 1960 or later — their FRA will be 67 years.

Can You Claim Social Security Before Full Retirement?

Yes, you can start collecting benefits at 62 years old, but you’ll get about 30% less money each month. Many people choose this because they retire early or want to secure some guaranteed income.

But even claiming just a few months early can reduce your monthly benefit. That’s why it’s important to understand your exact FRA to avoid losing money unknowingly.

How Much Can You Get?

Here’s a comparison of monthly payments based on when you claim:

At FRA in 2024: Up to $3,822 per month
At age 62: Up to $2,710 per month

That’s a big difference — about $1,100 less each month if you retire early. Delaying until age 70 can boost your monthly benefit by about 25% more than your FRA.

2025 Cost-of-Living Adjustment (COLA)

Each year, Social Security payments increase slightly to keep up with inflation. This is called COLA (Cost-of-Living Adjustment). In 2025, the COLA will be 2.5%, which is the lowest increase since 2021. This change will start with January 2025 payments.

Impact on Boomers and Gen X

The people most affected by the rising retirement age are:

Younger Boomers: Born between 1959 and 1965. Many of them are already turning 65, but studies show that 1 in 3 will rely on Social Security for 90% of their income in retirement.

Gen X: Born between 1965 and 1980. This group is also struggling to save. The average Gen X household has only around $150,000 saved, far from the $1.5 million needed to retire comfortably. Shockingly, 40% of Gen Xers have no savings at all.

Should You Delay Claiming Benefits?

If you can afford it, waiting until age 70 is the best way to get the highest monthly check. But only 4% of people actually wait that long.

Still, even waiting until your FRA instead of claiming early can make a big difference in how much money you receive throughout your retirement.

Final Thoughts

Social Security is a vital income source for millions of Americans. As the full retirement age increases again in 2025, it’s important to know your FRA and understand how claiming early or late affects your payments. Whether you’re close to retirement or still a few years away, planning ahead can help you get the most out of your benefits.

Stay informed, check your expected FRA on the Social Security Administration website, and plan your retirement smartly to avoid surprises later.

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