Freedom, leisure, and personal fulfillment, that is what retirement is to many people. Some might travel while others pursue new hobbies, and others might just want to enjoy the additional quality time they have with loved ones. Unfortunately, the SSA has changed the retirement age, which means that a more relaxed and highly sought-after lifestyle will only be available after age 65. Find out today how this change will affect you in the future.

Many people rely on retirement benefits

The Social Security Administration (SSA) is a federal agency that distributes social insurance in the form of Social Security. More than 70 million Americans rely on the monthly Social Security benefits, including retirees, survivors, and people with disabilities. It is a vital source of income, and for most, Social Security makes out the majority of their monthly income, especially after retirement.

According to the Social Security Fact Sheet, 90% of citizens in the age group of 65 or older receive Social Security. Once citizens reach their full retirement age (FRA), these benefits help them afford basics such as housing, groceries, and medical care. If you are someone planning to retire soon, listen and learn, as the FRA for 2025 has changed, and understanding these changes is key to planning a smooth retirement.

The SSA changes the retirement age

The US is undergoing some major changes thanks to the SSA, and these changes will affect current and future retirees. While some might think of these changes as sudden, they’ve been developing for a long time. In 1983, these changes officially began, leading to the gradual increase of the FRA from 65 to 67. The goal is not to disrupt the entire system, but instead to protect it, securing the future of the Social Security Trust Fund.

The modern era with its modern medicine and technology has resulted in people living much longer than before, and thus retiring later than expected. The Social Security system had to evolve to keep up with the new economic circumstances and generation. If the SSA did not implement a new retirement age, the Social Security Trust Fund would face extreme financial pressure, and potentially result in difficult payment distribution in the future.

It is crucial to understand your FRA, as it plays a role in your monthly Social Security benefits. Claiming before or after your FRA significantly impacts your amount, which is important to consider along with the SSA’s cut in benefits.

Understanding your full retirement age

The FRA to qualify for Social Security benefits was 65, but now, for some people that age has increased. For 2025, the following people will have a later FRA than expected:

Anyone born in 1959, the FRA is 66 years and 10 month
Anyone born in 1960 or later, the FRA is 67 years

The increased FRA for the abovementioned citizens affects the total Social Security benefits they will receive each month, as well as when the best time to start claiming benefits would be. Now, anyone can start claiming benefits as early as age 62, but doing so will decrease your monthly benefits for the remainder of your life. According to MD Climate Academy, the FRA average benefit is $1000 monthly. By delaying retirement to age 70, you could incresae your total benefit by 24%–32% .

Comprehending the estimates could be the loophole to ensure your retirement starts out smoothly, especially if the 2026 cost of living adjustments is not living up to your expectations. Remember, it all depends on your individual overall health and your estimate lifespan. For more information, have a look at SSA Provisions Affecting Retirement Age to see how provisions affect normal retirement age and the earliest eligibility age.

Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.