Understanding the Full Retirement Age in 2025
For individuals planning their retirement in 2025, understanding the full retirement age (FRA) is crucial. The FRA is the age at which a person can receive their full Social Security benefits without reduction, and it's determined by your birth year. For those born in 1959, the FRA in 2025 is 66 years and 10 months. Individuals born in 1960 or later have an FRA of 67.
The Birth Year Breakdown
Your full retirement age is determined by your birth year. The gradual increase in FRA establishes different ages for different birth cohorts.
Early vs. Delayed Retirement
You can claim benefits as early as age 62 or delay them until age 70, impacting your monthly benefit amount.
Claiming Early at Age 62
Starting benefits at 62 results in a permanently reduced payment. The reduction depends on the time between your early retirement date and your FRA.
Delaying Until Age 70
Delaying benefits past your FRA increases your monthly payments up to age 70. You earn delayed retirement credits for each year you delay claiming.
How Earnings Affect Your Benefits
Working while receiving benefits before your FRA can temporarily reduce payments due to the Social Security earnings test. For 2025, this limit is $23,400 for those below FRA. Exceeding the limit results in some benefits being withheld. Once you reach your FRA, there's no limit on earnings affecting benefits.
Comparison of Full Retirement Ages by Birth Year
The table below outlines the full retirement age based on your birth year. If you were born on January 1st, the SSA considers you born in the prior year. The full list can be found on {Link: SSA website https://www.ssa.gov/oact/progdata/nra.html}.
| Year of Birth | Full Retirement Age |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
Planning for a Secure Retirement
Planning your retirement involves considering your situation. The decision of when to claim Social Security is significant. For more details and a comprehensive chart, visit the {Link: Social Security Administration's page on normal retirement age https://www.ssa.gov/oact/progdata/nra.html}.
Conclusion
The new retirement age in 2025 primarily affects those born in 1959, whose FRA is 66 years and 10 months. For individuals born in 1960 and later, the FRA is 67. Understanding these ages and the implications of early or delayed claiming is important for retirement planning.
