As of May 2025, the Social Security Administration’s gradual increase in the Full Retirement Age (FRA) continues to influence the retirement plans of millions of Americans.
Individuals born in 1959 will reach their FRA of 66 years and 10 months this year, marking another key milestone in the phased changes introduced by the 1983 amendments to the Social Security Act.
Understanding Full Retirement Age (FRA)
The Full Retirement Age is the point at which individuals can claim 100% of their Social Security retirement benefits. For those born in 1959, the FRA is 66 years and 10 months.
This means individuals turning 66 in 2025 will hit their FRA between March 2025 and January 2026, depending on their month of birth.
Full Retirement Age by Birth Year
| Birth Year | Full Retirement Age |
|---|---|
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 and later | 67 years |
Early vs. Delayed Retirement: Impact on Benefits
Although Social Security benefits can be claimed as early as age 62, doing so will lead to a permanent reduction in your monthly benefit.
For example, if your FRA is 66 years and 10 months and you begin collecting at 62, your benefits could be reduced by approximately 29.17%.
On the other hand, delaying retirement past your FRA can boost your monthly benefit. For each year you delay retirement (up to age 70), benefits increase by about 8% annually.
Estimated Reduction Based on Early Retirement
| Retirement Age | Benefit Reduction |
|---|---|
| 62 | ~29.17% |
| 63 | ~24.17% |
| 64 | ~19.17% |
| 65 | ~13.33% |
| 66 | ~6.67% |
| 66 years, 10 months | 0% (Full Retirement Age) |
Why the FRA Is Increasing
The rise in FRA was designed to ensure the long-term financial sustainability of Social Security, especially as life expectancy continues to grow.
When Social Security began in 1935, the average life expectancy was around 61 years. Today, it’s closer to 79 years.
To adapt to this change, the 1983 Social Security amendments outlined a gradual increase in the FRA from 65 to 67, which has been implemented over several decades.
Planning for Retirement in 2025
If you’re nearing retirement age in 2025, it’s important to take several proactive steps:
1. Review Your Social Security Statement
Log in to your “my Social Security” account to review your earnings history and get a personalized estimate of your future benefits.
2. Assess Your Financial Needs
Consider your expected retirement income needs and how Social Security fits into your overall plan.
3. Consider Health Insurance Coverage
Medicare eligibility starts at age 65. If you plan to retire before that, make arrangements for interim health insurance coverage.
4. Consult a Financial Advisor
A professional can help you navigate retirement planning, including tax strategies, investment options, and Social Security optimization.
Conclusion
The ongoing increase in the Full Retirement Age reflects the evolving demographic and financial realities facing the Social Security system.
Understanding how your birth year impacts your FRA and how early or delayed retirement influences your monthly benefit is key to building a solid retirement plan.
By staying informed and preparing ahead, you can make confident decisions that support your financial security in retirement.
FAQs
Can I still retire at 62?
Yes, but your monthly Social Security benefits will be permanently reduced compared to waiting until your FRA.
What happens if I delay retirement past my FRA?
Your benefits increase by about 8% for each year you delay, up to age 70.
How does my birth year affect my FRA?
Those born in 1959 have an FRA of 66 years and 10 months. For people born in 1960 or later, it is 67 years.