The Social Security Administration has announced another change as millions of Americans approach retirement. The full retirement age (FRA) is increasing once again. This change will affect individuals born in 1959, who will reach full retirement age in November 2025 at the age of 66 years and 10 months.
For millions of future retirees, this change means reassessing retirement plans as well as financial strategies.
A Gradual Climb to Age 67
It must be noted that the increase in FRA isn’t something that is new, it has been a phased approach that started in 1983. The law then increased the FRA from 65 to 67 to show longer life expectancies and to prevent strain on the Social Security trust fund.
For those born between 1943 and 1954, full retirement age remained at 66. Starting with people born in 1955, the FRA increased by two months per birth year. That pattern continues, meaning:
If you were born in 1959, your full retirement age is 66 years and 10 months.
If you were born in 1960 or later, your full retirement age is 67.
So, for those citizens turning 66 in January 2025 (born in January 1959), they will not reach full retirement age until November 2025.
Why the Full Retirement Age Matters
The full retirement age determines when you can begin collecting your full Social Security benefits without any reductions. You can still claim benefits as early as age 62, but doing so permanently reduces your monthly payments.
For example, someone whose FRA is 66 years and 10 months and who claims at 62 could see up to a 30% reduction in their monthly benefit.
2025 Earnings Limits and Working While Retired
If you plan to work while collecting Social Security, you’ll need to understand the earnings limits, especially before you reach FRA.
In 2025:
If you are under FRA for the entire year, you can earn up to $23,400 without any effect on your benefits. After that, $1 is deducted for every $2 earned.
If you reach FRA in 2025, the limit jumps to $62,160 in the months before your birthday. After that, you can earn an unlimited amount without reductions.
What This Means for People Retiring in 2025
If you’re turning 66 in 2025 and were born in 1959, don’t expect to qualify for full benefits in January. You’ll need to wait until November to hit the official FRA mark of 66 years and 10 months.
This delay may come as a surprise to some, especially those planning to retire early in the year. It’s important to check your personalized Social Security statement to confirm your specific FRA and projected benefits.
Planning ahead can mean the difference between a secure retirement and a tighter financial situation.
Is the Retirement Age Going to Keep Rising?
Currently, the FRA caps out at 67 for anyone born in 1960 or later. There’s ongoing debate in Congress about potentially raising it again as part of larger efforts to strengthen the Social Security program, which is projected to face funding challenges by the mid-2030s.
However, as of 2025, no new legislation has been passed to raise the retirement age beyond 67. Still, retirees should stay informed, as future changes could affect younger generations planning for retirement today.
Final Thoughts: Plan Smart, Retire Confidently
With the FRA now at 66 years and 10 months for people born in 1959, timing your retirement is more important than ever. Whether you’re considering early retirement, planning to work into your late 60s, or waiting until 70 to maximize benefits, understanding how age impacts your Social Security payments is critical.