Retirement Social Security

Social Security Full Retirement Age Has Peaked (For Now) - 7 Critical Things To Know

If you were born in 1960, the earliest you can claim your full Social Security benefit is your 67th birthday.

By Michelle Smith

Edited by Laura Ratliff

Updated July 3, 2025

If you've been calculating how much money you need to supplement your Social Security income in retirement, you know that your monthly benefit amount depends on how close you are to your full retirement age (FRA) when you file for Social Security.

Your FRA is based on your year of birth, and since 1983, the American FRA has risen steadily, reaching its final scheduled stage this year. As of May 2025, the full retirement age for individuals born in or after 1960 is 67.

If you're getting ready to retire, keep reading. We explain what you need to know as more Americans start to hit the newest retirement-age thresholds.

Earn cash back on everyday purchases with a debit card

Want to earn cash back on your everyday purchases without using a credit card? With the Discover^® Cashback Debit account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!¹ <p>See website for details.</p>

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Learn more about the Discover Cashback Checking account

The full retirement age has stopped rising, for now

The 1983 Social Security Amendments mark the last time the FRA was raised. The amendments spaced out the gradual retirement age increase over a period of nearly four decades, resulting in a gradual shift in the FRA from age 65 to age 67.

As of this writing, no additional legislation has been implemented to increase the FRA. This means that, for now, anyone born in 1960 or after can consider 67 to be their official FRA. This is the highest the FRA will go under current law, though Congress could always initiate changes with future legislation.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Why 2025 matters

As per the 1983 amendments, Americans born in 1959 reach their full retirement age at 66 and 10 months. This means that those born in January 1959 will reach their full retirement age in November 2025, making 2025 the last year in which anyone with an FRA below 67 can start receiving benefits.

Depending on their birth month, individuals born in 1959 will start receiving full Social Security benefits in 2026. Those born in 1960, the first age group to retire at 67, will hit their FRA in 2027.

Claiming at 62 comes with steeper reductions now

While you can start claiming Social Security benefits at age 62, doing so comes with a lifelong reduction in your monthly benefits amount. The further you are from your full retirement age when you start claiming benefits, the greater the reduction.

However, if you were born in 1960 with an FRA of 67, the reduction for taking benefits early is higher than it was. While those born in 1959 had their benefit reduced to 29.17% if they claimed benefits at age 62, anyone born in 1960 experienced a 30% reduction for claiming benefits at the same age.

This means that if you were due to receive a monthly benefit of $1,800 if you took your benefits at your FRA of 67, your benefits could go down to $1,260 for life if you started claiming them at 62.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

Delayed retirement credits still max out at 70

On the flip side, if you wait to claim your Social Security benefits between the ages of 67 and 70, you'll earn up to an 8% annual increase in your monthly benefits check. If you reach your full retirement age at 67 but delay benefits until age 70, your benefit would potentially increase from $1,800 a month to $2,232 a month.

While you can delay claiming benefits until after age 70, there is no monetary benefit to doing so. The 8% increase peaks at age 70 and won't rise any higher if you continue to delay.

The earnings test still applies if you work before FRA

If you claim your Social Security benefits before you reach age 67 but continue to work, your benefits could be reduced if you earn over a set annual income limit. For 2025, that limit is $23,400, but the exact earnings limit amount changes from year to year.

This means that if you're receiving benefits while younger than your FRA, your benefits will be reduced by $1 for every $2 you earn over the limit. During the year in which you turn 67, the reduction changes to $1 for every $3 you earn over the limit.

Beginning with the month you reach age 67, the earnings limit expires, and you will no longer be subject to a benefits deduction.

Your FRA is personal to your birth year

Calculating your FRA can be tricky, especially since it doesn't have anything to do with when you actually retire from your full-time career. Instead, you could reach your FRA well before retiring (or potentially well after). The Social Security Administration's FRA Calculator can help you figure out exactly when you reach your FRA and start to qualify for full benefits.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

This is the final scheduled shift, unless Congress acts again

While no further changes to the FRA are currently planned, future reforms could still reshape benefits, especially if Social Security's funding gap widens. If you were born from 1961 onward, it's smart to keep your eye on any Social Security-related legislation and so you can voice your opinions about changes that could impact your retirement.

Bottom line

Calculating your full retirement age and deciding when to start taking benefits can be a lengthy process that requires multiple conversations with your spouse, accountant, and retirement planner.

But pinning down the specifics early on can help you lower your financial stress, not just now, when you're still in the early stages of planning for retirement, but later, when you're enjoying your hard-earned break from the workforce. Your future self will thank you for the Social Security benefits planning you do now.

More from FinanceBuzz: