The Social Security Administration (SSA) has announced a change to its retirement age policy starting January 1, 2025. The new policy raises the full retirement age from 66 years and 8 months to 67 years.
In 2024, those born in 1958 reached their 66-and-eighth-month birthday, marking the beginning of their full retirement benefits. However, those born a year later will have to wait until they are 66 and 10 months old to claim full benefits without penalties, except for those born in the first two months of 1959 who can claim benefits immediately.
For individuals born in 1960 or later, the full retirement age is now set at 67 years. This change affects those who plan to retire early, as they will face a permanent reduction in their monthly Social Security payments.
The SSA calculates this penalty based on the number of months before full retirement age that an individual claims benefits. For every month prior to full retirement age, the reduction is 0.55% per year for the first 36 months, and less than 0.42% per year thereafter.
Source: https://en.as.com/latest_news/goodbye-to-retirement-age-of-66-years-and-8-months-here-is-the-new-retirement-age-from-january-1-2025-n