Expect Lifelong Changes: The Social Security Administration (SSA) is raising the Full Retirement Age (FRA) in August 2025, marking another milestone in the gradual shift away from the old retirement benchmark of 65. This update impacts people born in specific years and may affect your benefits planning.
Why the Retirement Age Is Changing
The full retirement age has been rising incrementally over decades to reflect increased life expectancy and strengthen the Social Security Trust Fund. Originally set at 65, it now increases based on your birth year, following rules established under the 1983 Social Security reforms.
This change helps maintain the program’s financial sustainability while aligning benefits with modern longevity trends.
Who Is Affected by the 2025 Adjustment
| Birth Year | Prev. FRA | New FRA (Aug 2025) |
|---|---|---|
| 1958 | 66 years, 8 months | — |
| 1959 | 66 years, 8 months | 66 years, 10 months |
| 1960 or later | 67 years | 67 years |
Those born in 1959 will see their FRA increase to 66 years and 10 months, beginning in August 2025. For everyone born in 1960 or later, FRA will remain at 67, but the expectation to reach that milestone begins for retirees in coming years. This change takes effect automatically and affects benefit eligibility.
Why It Matters: FRA and Benefit Amounts
Your Full Retirement Age determines when you qualify for full monthly Social Security benefits. Claiming earlier (as early as age 62) results in permanent reductions—up to 30% less for those born in or after 1960.
Conversely, delaying benefits past FRA up to age 70 increases your monthly benefit by 8% annually. That means waiting until age 70 can boost your benefit by up to 24%, significantly enhancing lifetime Social Security income.
Important Payment & Earnings Rules in 2025
The annual cost-of-living adjustment (COLA) for 2025 is 2.5%, raising average benefits from $1,927 to $1,976 per month. Additionally, earnings limits remain key for working beneficiaries under your FRA:
- Under full retirement age all year: $1 is withheld for every $2 earned over $23,400
- Year of reaching FRA: $1 lost for every $3 earned above $62,160, until the month you hit FRA
After reaching FRA, there is no earnings limit—you can earn freely without deductions, and the SSA may recalculate benefits to include previously withheld amounts.
How the FRA Update Impacts Real-Life Planning
The change isn’t merely administrative—it can influence several aspects of retirement planning:
- Timing decisions: Claiming benefits early may now mean a larger permanent penalty.
- Spousal/survivor planning: Coordinating the claiming strategy with a spouse may reduce overpayment or loss scenarios.
- Delayed credits: People born in 1959 may benefit from delaying until month FRA hits.
- Income planning: If continuing to work, staying aware of earnings thresholds helps avoid deductions.
What to Do Now
- Check your birth year and verify your FRA via your SSA account.
- Use the SSA’s Retirement Age Calculator to assess your benefit amount at different claiming ages.
- Consider your health, anticipated lifespan, personal savings, or employment plans before claiming.
- If married, evaluate spousal or survivor benefits in your claiming strategy.
- Review your earnings record on SSA.gov for accuracy.
With the FRA increasing yet again in August 2025, retiring at 65 is no longer the standard path. This incremental shift—primarily affecting those born in 1959 and beyond—means planning matters more than ever.
Whether you’re deciding on when to claim benefits or how long to work, this change can significantly impact your lifetime retirement income.
FAQs
Can I still claim benefits at age 65?
Yes—but you will receive a reduced amount, less than the full benefit available at your FRA (now higher than 65 for many birth years).
Why did the FRA increase again in August 2025?
It’s part of scheduled increases under the 1983 law, designed to reflect longer life expectancy and preserve Social Security solvency.
How much will benefits increase if I delay past FRA?
If you wait to claim until age 70, your benefit could rise by up to 24% compared to claiming at FRA, thanks to 8% annual delayed retirement credits.