Starting in 2025, millions of Americans will face a major shift: full Social Security retirement benefits are no longer available at age 65. The new full retirement age (FRA) is now 67 for everyone born in 1960 or later, marking the final phase of changes passed decades ago under the 1983 amendments to the Social Security Act.
What Changed and Why?
Previously, full Social Security benefits were available at age 65. But due to rising life expectancy and long-term funding concerns, Congress decided to gradually raise the FRA. The phase-in began with those born in 1955 and ends now with those born in 1960.
If you were born in:
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1955 – FRA is 66 and 2 months
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1956 – 66 and 4 months
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1957 – 66 and 6 months
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1958 – 66 and 8 months
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1959 – 66 and 10 months
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1960 or later – FRA is 67
Now that Americans born in 1960 are turning 65 in 2025, they are the first who must wait until 67 to receive full retirement benefits.
You Can Still Retire at 62 – But It’ll Cost You
The option to start collecting Social Security at age 62 remains. But doing so comes with a 30% reduction in benefits. For example:
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A retiree eligible for $1,000 at age 67 would receive only $700 per month if they claim benefits at age 62.
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Waiting until age 70 increases that amount to $1,240, a 24% bonus for delaying.
This Is the Final Scheduled Increase – For Now
This increase to 67 is the last scheduled change under the 1983 law. However, more increases could be on the horizon. In 2025, the House Republican Study Committee proposed “modest” retirement age increases for future retirees to reflect longer life spans. While no new age has been finalized, some proposals suggest raising the FRA even further.
Why the FRA Was Raised
The core reasons are clear:
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People are living longer and collecting benefits for more years.
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Social Security is facing insolvency.
According to the 2024 Social Security Trustees Report, the retirement trust fund could be depleted by 2033. If that happens, benefits would be cut to 77% unless Congress intervenes.
A Political Divide on Solutions
How to fix Social Security remains a deeply partisan issue:
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Republicans generally support raising the retirement age further to extend the system’s lifespan.
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Democrats prefer increasing revenue. The Social Security and Medicare Fair Share Act, backed by lawmakers like Senator Sheldon Whitehouse and Representative Brendan Boyle, would tax earnings above $400,000. Currently, income over $168,600 isn’t taxed for Social Security purposes.
Boyle says, “We’re working to protect the benefits that millions of Americans have earned, and we won’t let them be stolen to fund another billionaire windfall.”
What You Should Do Now
If you’re nearing retirement:
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Know your full retirement age based on your birth year.
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Plan wisely: early retirement means smaller checks.
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Track possible future changes to Social Security laws.
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Consider your health and finances when deciding when to retire.
Conclusion
The end of full Social Security benefits at age 65 is now official for millions. If you’re turning 65 in 2025 or later, you won’t receive full benefits until age 67. This historic shift highlights the need for careful retirement planning and attention to future policy changes that could affect your income in retirement.