The full retirement age for Social Security benefits is changing starting January 1, 2025. Americans planning to retire in 2025 should note the increase in full retirement age.
In recent years, the Social Security Administration has announced cost-of-living adjustments (COLA), which apply to beneficiaries’ payments starting with the disbursement corresponding to January. This year’s COLA was 2.5%, affecting contributors and their earnings for each “quarter of coverage” as well as wage caps for Social Security taxes.
The new changes also mean beneficiaries will have to wait a bit longer to reach full retirement age. Those born in 1958 or earlier can claim full benefits at 66 years old, but those born in 1960 or later must wait until they are 67 years old.
For individuals applying for benefits early (before their full retirement age), the Social Security Administration offers a calculation to determine how much their monthly payments will be permanently reduced. The reduction depends on how many months prior to full retirement age a beneficiary claims benefits, ranging from 0.55% to 0.42%.
Source: https://en.as.com/latest_news/goodbye-to-retirement-age-of-66-years-and-8-months-here-is-the-new-retirement-age-starting-jan-1-2025-n