Social Security’s full retirement age is set to increase to 66 years and 10 months in November 2025, affecting those born in 1959. This change marks the next step in a gradual increase that began in 1983, when the full retirement age was 65.
The Social Security reform law enacted in 1983 aims to gradually raise the full retirement age from 65 to 67 over a period of 22 years for those born between 1943 and 1954. This change will now apply to individuals born in 1959, requiring them to wait until they reach their birth month in 2027 to receive their full benefits.
Retirees can begin collecting Social Security benefits as early as age 62, but this reduces their monthly benefit by up to 30%. In contrast, delaying claiming Social Security benefits can result in a bonus of up to 8% for waiting until the maximum benefit age.
In addition to the increase in the full retirement age, Social Security recipients will receive a 2.5% cost-of-living adjustment (COLA) next year to account for inflation. This is the smallest COLA since 2021 and comes as inflation has eased in recent years after reaching its highest level in four decades in 2022.
However, Social Security’s financial outlook remains concerning, with the primary trust fund projected to be depleted by 2033, leading to a potential 21% benefit cut across the board. This would amount to significant reductions for eligible recipients, including $12,400 for single-income couples and $16,500 for dual-income couples.
Source: https://www.foxbusiness.com/economy/social-securitys-full-retirement-age-increasing-2025-what-know