If you’re nearing retirement, deciding when to take Social Security benefits can significantly impact your monthly checks. The full retirement age (FRA) has been increasing since 1983 to reflect the rising life expectancy of Americans.
As of 2025, the FRA is set to reach 66 years and 10 months for those born in 1959, but it will continue to rise for younger generations. Knowing when to claim benefits can be a complex decision.
Key factors to consider include health and life expectancy, marital status, financial needs, and other retirement income sources. Generally, delaying benefits until after the FRA can result in higher monthly payments, while claiming early may provide more immediate cash flow but reduce your payout.
The Social Security Administration provides an example of how benefits change at different ages. For instance, if you claim benefits at age 62, your monthly benefit will be reduced by up to 30%. Conversely, delaying until after the FRA can increase your benefit by 8% per year.
To maximize your retirement income, it’s essential to understand these changes and plan accordingly. The government is also introducing other adjustments in 2025, including a cost-of-living adjustment, increased maximum taxable earnings, and appointment-based services for in-person services.
Ultimately, there is no one-size-fits-all answer to when to claim Social Security benefits. However, by considering your individual circumstances and planning ahead, you can make informed decisions that impact your financial well-being.
Source: https://www.investopedia.com/social-security-retirement-age-set-to-change-in-2025-8770264