A recent headline suggested that the full retirement age for collecting Social Security is increasing in 2025 for everyone. However, this was not the case. The increase applies only to those born between 1943 and 1959. For individuals born on or after 1960, the full retirement benefits remain at 67.
The full retirement age refers to when one can collect unreduced Social Security benefits without a reduction in monthly payments. This age varies depending on the year of birth. As of now, most Americans consider 65 as the typical retirement age due to historical requirements. However, this was not always the case.
In 1983, Congress passed a law that gradually increased the full retirement age from 65 to 67 for those born in 1938 or later. The increase aimed to match the rising life expectancy of Americans approaching retirement. The retirement age has been increasing by two months for each subsequent birth year until 1960.
For instance, if you were born in 1957, your full retirement age would be around 66 and 6 months, while someone born in 1958 would need to wait until 66 and 8 months. For those born after 1960, the full retirement age remains at 67.
Social Security recipients have the option to claim benefits earlier than their designated full retirement age, but this will result in reduced monthly payments. Claiming benefits as early as 62 can reduce the amount by about 25%, while waiting until 70 can increase it.
Source: https://finance.yahoo.com/news/social-securitys-full-retirement-age-110024392.html