Social Security’s Full Retirement Age Set to Increase in 2025

Beginning in 2025, the full retirement age for Social Security will increase to 67 for individuals born in 1960 and later. This change forms part of a broader adjustment that aims to align benefits with increasing life expectancy. The adjustments mean that eligible workers will need to wait longer to receive their full benefits, reflecting a significant shift for future retirees. According to experts, the shift arises from updated calculations by the Social Security Administration, which underscore the growing longevity of the U.S. population. The age has been gradually increasing since 1983. It originally started at 65 and has risen in increments, with the adjustment beginning in 2015. Alongside the increase in the full retirement age, retirees opting to take benefits early at 62 will see a decrease in their monthly payments. The average reduction will approach 30% for those drawing benefits before reaching the full retirement age. Notably, those who delay benefits beyond the full retirement age can receive an increased monthly benefit amount based on their income and the number of months they do not collect benefits. The change is expected to affect millions of Americans who will find themselves navigating new choices regarding retirement and financial planning.