Goodbye to full Social Security benefits at 65: SSA raised the retirement age starting this month

The traditional age of 65 has long symbolized the threshold for retirement and full Social Security benefits in the United States. However, this standard has officially shifted as the government raises the age of retirement.

Beginning in May 2025, individuals will need to wait longer to receive full Social Security retirement benefits, as the Social Security Administration (SSA) continues implementing changes set in motion by legislative reforms from over four decades ago.

These adjustments stem from the Social Security Amendments of 1983, which introduced a gradual increase in the Full Retirement Age (FRA) in response to longer life expectancies and rising financial demands on the Social Security system.

The changes aim to preserve solvency amid shifting demographics. As of 2025, the FRA for individuals born in 1959 has risen to 66 years and 10 months. Those who turn 66 in 2025 will reach their FRA between March and January 2026, depending on the birth month.

This increase represents another step toward the SSA’s long-term goal of stabilizing benefit payouts. Here it is outlined below:

• Born in 1955: FRA is 66 years and 2 months
• Born in 1956: FRA is 66 years and 4 months
• Born in 1957: FRA is 66 years and 6 months
• Born in 1958: FRA is 66 years and 8 months
• Born in 1959: FRA is 66 years and 10 months
• Born in 1960 or later: FRA is 67 years

Can I claim retirement benefits early?

While Americans can still begin claiming Social Security retirement benefits as early as age 62, doing so comes with significant financial trade-offs. For example, someone with an FRA of 66 years and 10 months who claims benefits at 62 could see their monthly payments reduced by approximately 29.17%.

This reduction is permanent and affects monthly payouts for the rest of the beneficiary’s life. Conversely, deferring benefits beyond the FRA increases the monthly benefit by about 8% for each year the beneficiary postpones, up to age 70.

A retiree who waits until age 70 could receive up to 32% more than if they had claimed at their FRA in measures designed to make sure the SSA maximises the cash pool it has on hand.

Thus claimants should make a carefully considered decision based on all of their financial factors and any potential mitigating circumstances in the future to ensure they make the best decision possible.

So, while many still consider 65 a symbolic retirement milestone, the financial realities now demand more strategic timing as the Republicans continue to flirt with economic insecurity and inflation continues to trend up globally.

Especially as the long-term future of Social Security appears to be volatile, with projections indicating funding will begin running out from the mid 2030s and no later than 2041.