Major Retirement Age Change in the US Starting January 1, 2025 – Shocking Impact on Your Social Security Checks Revealed

Although the majority of Americans believe that 65 is the typical retirement age, Social Security’s “full retirement age” is already higher than that and will rise much further in 2025.

The full retirement age (FRA) of Social Security is the age at which employees can begin receiving their full benefits; this is determined by both their income throughout their working years and the number of years they have worked.

People can get more from Social Security when they eventually collect their benefits if they work longer and earn more money.

The FRA was previously 65 years old, but in 1983, Congress changed the program to raise the retirement age to reflect rising life expectancies.

Based on a person’s birth year, the FRA has been gradually increasing by two months at a time as part of that redesign.

People born in 1957, for example, reached their FRA when they turned 66 years and 6 months old, or beginning in 2023; but, those born in 1958 must turn 66 years and 8 months old, or beginning in September 2024, in order to be eligible for their full benefits.

For those born in 1959, the full retirement age will rise by two months once more, reaching 66 years and 10 months. People born in 1959 will therefore begin to be eligible for their full benefits in November 2025, marking the implementation of the higher FRA for that cohort.

Indeed, there is some leeway in the timing of Social Security benefits claims. In exchange for a lower payout that is fixed for the duration of retirement, people can begin making claims as soon as they turn 62.

Because many older Americans are forced into retirement earlier than they had anticipated or because they feel it makes more sense to claim more years of guaranteed retirement income.

Even if it is at a lower amount, many choose to make the sacrifice of claiming at age 62, which will result in a benefit that is approximately 30% less than your full benefit.

Although the retirement age increase is not new, some older workers may not be prepared for it.