You may think that the average retirement age is 65 years. Although that belief is widely held, the full retirement age (FRA) for Social Security is actually older than that. In 2025, the FRA increases again. For Baby Boomers and Gen Xers, this change could impact their ability to retire fully this year.
What is FRA?
Social Security’s FRA refers to when workers can begin claiming their full SS benefits. FRA is based on the number of years they worked and their earnings during their working years. Ultimately, the longer someone works, the more they can get from Social Security when they decide to claim their benefits.
At one point, the FRA was 65 years old. In 1983, the retirement age was raised to account for longer life expectancy in the United States. Since then, the FRA has been increasing in two-month increments, based on a person’s year of birth. For people born in 1957, the retirement age is 66 years and 6 months (or starting in 2023). People born in 1958 have an FRA of 66 years and eight months (September 2024).
Now, the FRA will increase again for people born in 1959.
The new FRA for Social Security
For those born in 1959, the full retirement age will increase by two months. It will be 66 years and 10 months, starting in 2025. People born in 1959 will be able to start qualifying for their full benefits in November 2025.
That said, there is some flexibility when it comes to claiming your Social Security benefits. Anyone can apply once they are 62 years old. However, if you choose to claim your SS benefits before FRA, you will receive a reduced benefit and it will remain in value until you retire. So, if you start applying at age 62 and your benefits are 30% less than they would be in full, that’s how much you’ll get during retirement. The Social Security Administration has indicated that a person retiring on their FRA in 2024 could receive a maximum monthly benefit of $3,822. A person retiring at age 62 will receive a maximum benefit of $2,710.
Surprisingly, most Americans choose to retire at age 62 anyway. Some workers are forced to retire and others think it makes sense to ask for more years of guaranteed retirement income, even if it is less than the full benefit.
How to Handle the Latest FRA Increase
The recent increase in FRA is nothing new. However, it may surprise some adults at work. Claiming one month before your full retirement age will result in your benefits being reduced. Ultimately, you may need to wait until your FRA is due so that you can claim your maximum benefit and not worry about anything in retirement.
If you’re curious about when you’ll be able to get your full benefits, check out this calculator on the Social Security Administration website.
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