The 2025 Social Security Age Change That Will Impact Everyone's Retirement Plans

If you're planning for retirement, Social Security likely plays a key role in your strategy. However, a big change to the full retirement age (FRA) might impact your monthly benefit.

Understanding this shift can help you make informed decisions about when to claim Social Security. Here are the facts about the 2025 Social Security age change — and how it might affect your retirement plans.

When Social Security was first introduced in 1935, the full retirement age was set at 65. However, in 1983, Congress passed a law to gradually raise the FRA.

This phased-in change has gradually raised the FRA for new recipients. Today, it means that anyone born in 1960 or later has a full retirement age of 67, rather than 65.

So, if you turn 65 in 2025, you'll need to wait until 2027 (at age 67) to receive full Social Security benefits. Retiring earlier and filing for Social Security immediately will result in a reduced monthly payout for the rest of your life.

If you were born in 1960, this shift directly affects you in 2025. You'll need to wait two additional years to reach FRA compared to earlier retirees.

For example, if you were born in 1959, your FRA is set at 66 years and 10 months. If you were born in 1960 — and thus are turning 65 this year — or were born after that year, your FRA is set at 67 years.

Waiting until FRA to file means you will get your full benefits. But you can do even better: For each year you delay claiming past FRA up to age 70, your monthly benefit will increase by another 8%, according to the Social Security Administration (SSA).

After the age of 70, there is no additional benefit to waiting any longer.

Now that you know how the age change will impact you in 2025, here are some ways it could influence your retirement planning.

Claiming Social Security before your FRA results in a permanent reduction in benefits. For example, if your FRA is 67 but you claim at 62, your monthly check could be up to 30% lower than if you waited, according to the SSA.

This reduction can add up over time, potentially leaving you with significantly less income in retirement. Delaying retirement can help ensure you receive a larger monthly benefit.

As previously mentioned, Social Security rewards the decision to delay claiming beyond full retirement age with an 8% boost per year up until age 70. So, continuing to work for a few more years can pay off in the long run.

Your Social Security benefit amount is based on your highest 35 years of earnings. So, it's also possible that working longer will enhance your monthly payout once you finally file for benefits.

Some people are not able to work until their full retirement age. Perhaps you are in poor health or have other reasons why you no longer can work.

If you need to claim Social Security as soon as you're eligible at 62, be aware that your monthly benefit will be significantly reduced. In 2024, the Social Security Administration estimated that a person retiring in 2024 at FRA could receive a maximum benefit of $3,822, while a person claiming at 62 would only receive a maximum benefit of $2,710.

This reduction lasts for the rest of your life.

Not everyone can — or wants to — work full time until age 67. One option is to take on part-time work or start a side hustle to cover expenses while delaying Social Security.

This approach allows you to earn extra income and cover your expenses so you don't have to take Social Security early and permanently reduce your benefits.

If you decide to both continue working and take Social Security at the same time, be mindful of the Social Security earnings test. If you earn too much income while working before full retirement age, it can reduce your benefits temporarily. The SSA explains this rule in detail on its website.

Another strategy to avoid taking Social Security early is to tighten your belt and lower expenses.

Downsizing your home, eliminating debt, and simply accepting a more modest lifestyle can help you curb costs and boost personal savings.

Reducing spending now can make it easier to delay benefits, maximizing the amount you receive each month once you do claim.

While the full retirement age change is important, it's not the only factor to consider when deciding when to claim Social Security. Your life expectancy, health, marital status, and financial needs all play a role in when you should file for benefits.

For example, if you have significant health issues that are likely to shorten your lifespan, claiming earlier might make sense.

Married couples may also come out ahead by coordinating their claims to maximize spousal benefits. Reviewing your circumstances with a financial advisor or other professional can help you determine the best claiming strategy.

With Social Security's full retirement age now at 67 for those born in 1960 or later, retirees in 2025 will need to carefully weigh when to claim benefits.

Delaying Social Security can result in a larger monthly payment, while claiming early leads to permanent reductions.

Ultimately, the best choice depends on your financial situation, health outlook, and retirement goals. How will you adjust your strategy to stretch your retirement dollars further?