The Social Security Administration (SSA) will set the full retirement age (FRA), and beginning in May 2025, a new phase of the progressive increase in the FRA will begin to take effect.
All individuals who were born in 1959 will be immediately impacted by this modification, since they will now attain their FRA at the age of 66 years and 10 months.
This modification is carried out as a component of a reform that was began in 1983 with the purpose of ensuring the financial viability of the system in light of the growing life expectancy.
What is the Full Retirement Age, also known as the FRA?
The Federal Retirement Age (FRA) is the age at which individuals who are receiving Social Security benefits are eligible to receive one hundred percent of their monthly benefits.
Although payments can start as early as age 62, doing so before the Federal Retirement Age (FRA) results in a reduction in monthly income that is permanent.
If a person retires at the age of 62 and has a full retirement age (FRA) of 66 years and 10 months, for instance, their benefits could be reduced by as much as 29.17% due to the reduction.
The following is a breakdown of the adjustments that have been made gradually to the FRA: how the FRA has evolved depending on the year of birth
| Year of Birth | 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 |
Depending on the month of birth, FRA for individuals born in 1959 is attained between March 2025 and January 2026.
Delaying benefits claims even after FRA is advised by experts. The “delayed retirement credits” are the reason for this, as they raise the monthly payment by about 8% for every year that it is postponed until age 70.
Indeed, according to some economists, waiting until that age generally results in larger benefits for healthy individuals.
A lot of people apply for Social Security around age 62, even though waiting has advantages. According to studies, this is frequently brought on by an urgent need for money or a short life expectancy.
Read Also: Social Security Payment Update: Who Qualifies for $2,826–$4,018 Next Week?
Furthermore, many are concerned about the program’s uncertain future because it is predicted that payouts could drop to 83% of their current level by 2035 if reforms are not implemented.
Advice for 2025 retirement planning:
- For customized forecasts, look up your past in the “my Social Security” account.
- Assess your actual retirement financial requirements.
- If you intend to retire before you reach Medicare eligibility (at age 65), make sure you have health coverage.
- For advice on how to maximize benefits and save money, speak with a financial advisor.
The nation’s economic and demographic shifts are reflected in the rising retirement age. Planning a stable and sustainable retirement depends on knowing how your year of birth impacts you and how choices about when to retire effect your benefits.
