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As of 2025, the Social Security Administration (SSA) has confirmed that the full retirement age (FRA) for claiming full benefits is no longer a fixed age of 67 for everyone.
Depending on your birth year, your FRA could now be 66 years and 10 months or higher, signaling a gradual shift in retirement planning for Americans.
With changes rolling out in response to longer life expectancy and program funding pressures, understanding the new retirement rules is crucial for anyone approaching retirement age.
What’s Changing in Social Security’s Full Retirement Age (FRA)?
The 1983 Social Security Amendments introduced a phased increase in the FRA, and now, as of 2025, the following ages apply:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 or later | 67 years |
This change impacts when retirees can receive their full Social Security benefits and how much they’ll receive if they retire early or delay retirement.
How Early or Late Retirement Affects Your Benefits
- Early Retirement (age 62): Reduces benefits by up to 30% if you were born in 1960 or later.
- Full Retirement: Receive 100% of your benefit at the designated FRA based on your birth year.
- Delayed Retirement (up to age 70): Increases your monthly benefit by 8% per year, up to 32% more overall.
Strategies to Bridge the Gap Before Full Retirement
If you want to retire before reaching FRA, it’s important to plan for the income gap. Here are proven strategies:
1. Phased Retirement
Negotiate part-time work with your employer. Working 15–25 hours/week can cover basic costs and delay tapping into Social Security.
2. Build a Cash Runway
Keep 18–24 months’ worth of expenses in a high-yield savings account to avoid withdrawing from investments during market downturns.
3. Monetize Unused Assets
- Rent out an extra room: Earn £700–£1,000/month
- Lease parking space: Earn £150–£300/month in cities
4. Take a Bridge Job with Benefits
Work part-time with companies that offer health benefits for 20+ hours/week—like Trader Joe’s, Home Depot, or Costco.
Tax-Efficient Retirement Withdrawal Tactics
Tap Taxable Accounts First
Withdraw from brokerage accounts early to allow retirement accounts to grow longer and avoid early withdrawal penalties.
Use Roth IRA Contributions
Access contributions (not earnings) tax- and penalty-free at any age, offering a zero-tax income source.
Keep MAGI Low
Stay under income thresholds to qualify for Affordable Care Act subsidies, saving thousands on health insurance before age 65.
Could Retirement Age Go Higher?
Although 67 is the current cap, policy discussions continue in Washington about increasing the FRA to 68 or 69 to address long-term Social Security funding challenges.
While not law yet, retirees should stay informed and flexible in their planning.
How to Prepare for Retirement in 2025 and Beyond
- Regularly review your retirement income strategy
- Diversify your income sources
- Maintain emergency savings
- Consider part-time work or side income opportunities
- Monitor legislative updates that could affect Social Security
The full retirement age is no longer universally 67, and this change will reshape how millions plan for retirement.
Whether you retire early, wait until FRA, or delay benefits, understanding these changes is essential to maximize your financial security.
Start strategizing today to retire on your terms, not just the government’s schedule.
FAQs
What is the new full retirement age for Social Security in 2025?
If you were born in 1959, your FRA is now 66 years and 10 months. For those born in 1960 or later, it is 67.
Can I still retire at age 62?
Yes, but doing so results in a permanent benefit reduction of up to 30%, depending on your birth year.
Will the FRA increase beyond 67 in the future?
Possibly. There are proposals to raise it to 68 or 69, but no changes have been finalized yet. Stay updated.