Retirement in America just got more complicated. The Social Security Administration has implemented another shift in the full retirement age (FRA)—a move that affects millions of older Americans counting on benefits as a primary income source. While many still assume they can retire at 65, that’s no longer the case for most.
Why the retirement age is changing
The retirement age for Social Security has been gradually increasing since 1983, when Congress passed reforms to extend the program’s solvency. In 2025, the SSA formalized these changes further, moving the FRA beyond 65 for many future retirees:
- Born in 1959: FRA is 66 years and 10 months
- Born in 1960 or later: FRA is 67 years
This means claiming benefits at 65 will now come with a permanent monthly reduction, unless you wait until your designated FRA or beyond.
Why this matters to your benefits
Understanding your FRA is essential because it directly impacts the monthly benefit amount you’ll receive for life. You can begin claiming Social Security at age 62, but your monthly check will be permanently reduced—by up to 30% compared to waiting until FRA. On the flip side, delaying benefits until age 70 could increase monthly payouts by 24–32%, according to SSA data.
Here’s how it breaks down:
- Age 62: Lowest monthly benefit
- FRA (66–67): Full benefit
- Age 70: Maximum monthly benefit
This makes strategic timing critical, especially with inflation and cost-of-living adjustments (COLAs) expected to remain modest.
COLAs aren’t enough to close the gap
While COLAs help preserve retirees’ purchasing power, they don’t offset early-claiming penalties. The 2025 COLA was 2.5%, and early projections for 2026 suggest a 2.6% increase. These raises may feel underwhelming in light of increasing healthcare, housing, and food costs for older people.
Why the SSA made this move
The SSA cites increased life expectancy and long-term funding challenges as primary reasons for adjusting the retirement age. Today, people live far longer into retirement than they did in 1935 when the program was created—necessitating updated funding strategies.
Still, the decision has sparked debate. In a recent SCL survey, only 18% of older Americans supported raising the retirement age to 70. Many fear such changes are de facto benefit cuts, especially for those in physically demanding jobs or with lower life expectancy.
What retirees should do now
If you’re nearing retirement, now is the time to:
- Check your FRA using the SSA.gov retirement calculator
- Review all income sources to optimize claiming age
- Delay benefits if possible to boost long-term monthly income
- Consult a financial advisor about balancing Social Security with tax strategies and inflation
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