Retirement age increases again in 2025: 66 years and 10 months
Next year, those born in 1959 will reach full retirement age at 66 years and 10 months (2 months more). However, those born in 1960 or later will have to wait until age 67 to access their full benefits.
Seniors
The start of 2025 will bring major modifications to the Social Security system. Next year, those born in 1959 will reach full retirement age at 66 years and 10 months. However, those born in 1960 or later will have to wait until age 67 to access their full benefits.
Many changes continue to affect both current beneficiaries and future retirees. These changes are intended to reflect the annual Cost of Living Adjustment (COLA), and in turn are a clear example of the economic disaster unleashed during the Biden administration.
By 2025, the COLA has been set at 2.5%, which increases beneficiaries' monthly payments. This adjustment also raises the amount of income needed to earn a Social Security credit (known as the "coverage room") and the Social Security taxable wage limit.
Plan ahead to make the process easier
Americans can begin claiming their benefits starting at age 62, but this involves a permanent 30% reduction in monthly payments. For each month the payment is taken early within the first 36 months, the benefit is reduced by 0.55%, and beyond that period, the reduction is 0.42% per month.
The Social Security Administration recommends applying for benefits up to four months in advance to facilitate the process and avoid setbacks. In addition, the SSA website offers tools to calculate how early retirement decisions will affect the total amount of benefits.
It is important to note that under SSA rules, those born on Jan. 1 must consider the previous year in determining their retirement age. This can significantly change the eligibility dates for full benefits.
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