Social Security rules around new retirement age announced as fresh rules begin in May
As of May 2025, the
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.
#Operation Sindoor
India responds to Pak's ceasefire violation; All that happened
India-Pakistan ceasefire reactions: Who said what
Punjab's hopes for normalcy dimmed by fresh violations
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.
Continue to video
Next
Skip
Ads by
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
IITD Tech Leadership Program
IITD TAILP
Apply Now
Undo
by Taboola
by Taboola
ALSO READ:
Trump stops funding for life-saving infant heart device research, cancels $6.7 million grant
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.
Live Events
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.
ALSO READ:
Elon Musk sued: Did SpaceX fire an employee over frequent bathroom usage due to Crohn's disease?
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
Tesla stock slides over 5% after Elon Musk criticizes Donald Trump, President says he's disappointed
Tesla Shares Drop Over 5% Amid Musk-Trump Fallout Donald Trump Is Very Disappointed With Elon Musk Live Events False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it! — Elon Musk (@elonmusk) June 5, 2025 Musk Denies Being Consulted on the Bill Analysts Weigh In on Risks for Tesla FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Tesla shares dropped over 5% on Thursday after investors noticed the growing tensions between Tesla CEO Elon Musk and US president Donald Trump, as per a report. The slide comes as Musk openly criticized Trump's massive tax legislation, stirring speculation that the once-friendly relationship between them may be coming to an end, according to a Reuters who called himself Trump's 'First Buddy' and led the administration's Department of Government Efficiency (DOGE) initiative, took to his social media platform X to call the legislation a 'disgusting abomination,' as per the report. The Tesla CEO said, "It more than defeats all the cost savings achieved by the DOGE team at great personal cost and risk," as quoted by responded by pointing out that Musk was upset because the bill would remove the electric vehicle mandates and said, "Don't know if we'll have a great relationship anymore," as quoted in the READ: Cargo ship carrying electric vehicles catches fire off Alaska – key points you need to know The US president also told reporters in the Oval Office on Thursday that, "I'm very disappointed with Elon. I've helped him a lot. He knew the inner workings of the bill better than anybody sitting here. He had no problem with it. All of a sudden he had a problem & he only developed the problem when he found out we're going to cut EV mandate," as per a post shared by Musk on his X went on to respond to Trump's accusations on X, by saying, "False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it!" as per Musk's X a portfolio manager at Argent Capital Management, Jed Ellerbroe told Reuters, "The budget bill contains bad stuff for Tesla with the end of the EV credits, and just generally his falling out with Trump has risks for Tesla and Elon's other companies," as quoted in the are worried because Elon Musk publicly criticized President Trump's tax bill as the tension might hurt Tesla's called it a 'disgusting abomination' and said it cancels out cost savings his government efficiency team worked hard to achieve.
Time of India
35 minutes ago
- Time of India
After Procter & Gamble cuts 7,000 jobs, Walmart now set to lay off over 100 tech workers in California
Walmart is planning to cut over 100 tech jobs in California as part of a bigger corporate layoff plan. The company says it's reshaping its teams to work faster and serve customers better. This comes soon after Procter & Gamble also announced major job cuts. Tired of too many ads? Remove Ads Here's why Walmart is cutting tech jobs Tired of too many ads? Remove Ads FAQs Walmart is cutting 106 tech jobs at its Global Tech office in San Bruno, California. These jobs will be permanently gone by August 22. These layoffs are part of a bigger plan by Walmart to cut around 1,500 corporate jobs across the U.S., as per job cuts will affect people working in global technology, U.S. e-commerce fulfillment, and advertising teams. Walmart says this is part of a 'restructuring' to help make decisions faster and to improve operations in a fast-changing business company wants to 'accelerate how we deliver and adapt' to customer needs. In their words, the goal is to 'sharpen focus' and deliver the kind of retail experience they think people will want in the is America's largest private employer with around 1.6 million workers in the U.S. Even though some jobs are being cut, Walmart says it is also creating new roles at the same time. But Walmart has refused to make any public comments about these specific layoffs, as per the report by San Francisco layoffs are happening just as Procter & Gamble also cut 7,000 jobs, showing a trend in big U.S. companies trimming workforce. Recently, during a company earnings call, Walmart warned that tariffs from the Trump administration might make things more expensive for customers, as per the layoff news, former President Trump posted on Truth Social that Walmart shouldn't raise prices and instead 'eat the tariffs' because it made billions in profits last leaders told Wall Street Journal that the layoffs are not because of trade or political issues, but instead are part of a long-term business plan, as per Wall Street says it's to make teams faster and more focused for future Walmart says the layoffs are part of a long-term business plan, not trade issues.
Mint
35 minutes ago
- Mint
Tesla share price cracks 8% after Trump slams Elon Musk amid escalating public feud over US tax bill
Tesla shares dropped more than 8% on Thursday on a day otherwise devoid of news for the electric vehicle maker, leading traders to speculate that Musk's increasingly pointed rhetoric suggests strain in the relationship that has benefited his sprawling empire of businesses. President Trump said on Thursday that Musk was upset because the bill took the EV mandate away. The world's richest man, a key figure in the Department of Government Efficiency's (DOGE) cost-cutting initiative for several months, has blasted the bill, not long after he said he would spend less time in the White House and more time with his companies. On his social media platform X, Musk has called on Congress members to kill the legislation, calling it a "disgusting abomination." Trump lashed out on Thursday against Elon Musk, saying he was "disappointed" by the billionaire's public opposition to the sweeping tax-cut and spending bill that is at the heart of Trump's agenda. "Look, Elon and I had a great relationship. I don't know if we will anymore," Trump said in the Oval Office. "He said the most beautiful things about me, and he hasn't said bad about me personally, but I'm sure that'll be next. But I'm, I'm very disappointed in Elon. I've helped Elon a lot." Trump also asserted that Musk's days of blistering attacks on the bill were motivated by the proposed elimination of consumer tax credits for electric vehicles. Musk, the CEO of electric vehicle maker Tesla, has said he opposes the bill because it will increase federal deficits. Musk hit back minutes later on his X social network, saying the 78-year-old president's claims he had advance sight of the bill were "false." "Whatever," he added above a video of Trump saying Musk was upset about the loss of subsidies for electric vehicles. The latest clash comes less than a week since Trump held a grand Oval Office farewell for Musk as he wrapped up his time leading the cost-cutting Department of Government Efficiency (DOGE). Musk stunned reporters at the time by turning up with a black eye that he said was caused by his son. "You saw a man who was very happy when he stood behind the Oval desk, and even with the black eye. I said, you want a little makeup? We'll get you a little makeup," Trump said. Trump said he could understand why Musk was upset with some steps he had taken, including withdrawing a nominee to lead the NASA space agency whom the tech tycoon had backed. The US president's "big, beautiful bill" on tax and spending -- the centerpiece of his domestic agenda -- could define his second term and make or break Republican prospects in the 2026 midterm elections. Musk however called it a "disgusting abomination" on Tuesday. A day later, the magnate called for Republicans to "kill the bill," and for an alternative plan that "doesn't massively grow the deficit."
