Social Security rules around new retirement age announced as fresh rules begin in May
Social Security Administration
's gradual adjustment of the Full Retirement Age (FRA) continues to shape the retirement decisions of millions of Americans. This phased change, originally established by the 1983 amendments to the
Social Security
Act, is designed to reflect increased life expectancy and ensure the long-term sustainability of the Social Security program.
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In 2025, individuals born in 1959 are reaching a key milestone. Their Full Retirement Age is now set at 66 years and 10 months, meaning depending on their birth month, they will reach FRA between March 2025 and January 2026. This adjustment is part of a broader schedule that incrementally raises the FRA for each birth year cohort. For example, those born in 1955 have an FRA of 66 years and 2 months, while individuals born in 1956 must wait until 66 years and 4 months.
The FRA increases by two months each subsequent year: 66 years and 6 months for 1957 births, 66 years and 8 months for 1958, and 66 years and 10 months for those born in 1959. For anyone born in 1960 or later, the Full Retirement Age is set at 67.
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While individuals can begin collecting
Social Security retirement benefits
as early as age 62, doing so comes with a significant trade-off: reduced monthly payments. For someone whose FRA is 66 years and 10 months, starting benefits at age 62 would lead to a permanent reduction of approximately 29.17%. On the other hand, delaying retirement beyond the FRA can boost benefits considerably.
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For each year retirement is postponed (up to age 70), monthly benefits increase by about 8%. This means a person who waits until 70 could receive significantly more each month than someone who starts collecting earlier.
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These changes were driven by demographic realities. When the Social Security system began in 1935, the average life expectancy in the U.S. was around 61 years. Today, that number has climbed to nearly 79 years.
The 1983 reforms responded to these shifts by slowly raising the FRA from 65 to 67 over several decades. As a result, retirees today must carefully weigh when to claim their benefits, balancing immediate needs against long-term financial security.
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