The full retirement age for Social Security is set to increase again in 2025, with people born in 1959 reaching their FRA at 66 years and 10 months old. This means that those born in 1959 will start receiving their full benefits in November 2025.
The FRA has been increasing over the years, from its original 65-year-old threshold. The increase is based on a person’s birth year, with each two-month bump affecting different cohorts of workers. For example, people born in 1960 won’t reach their FRA until they’re 67 years old.
Younger generations, particularly young boomers and Gen Xers, will be heavily impacted by this change. According to recent research, these groups are among the least prepared for retirement, with many lacking adequate savings to support themselves in old age. In fact, about 1 in 3 of younger boomers rely on Social Security benefits for at least 90% of their retirement income.
Social Security benefits can be maximized by delaying claiming until 70 years old, when benefits are boosted by around 25%. However, only a small percentage of Americans delay claiming to the maximum benefit. The annual cost-of-living adjustment will also increase in 2025, with a 2.5% hike due to cooling inflation.
Source: https://www.cbsnews.com/news/social-security-full-retirement-age-2025-what-to-know