Retirement Shock: Are You Eligible for Full Benefits in 2025?

According to the Social Security Administration (SSA) in the US, the Full Retirement Age (FRA) in 2025 will be 66 years and 10 months. This means that 100% of retirement benefits will be paid only after reaching this age. If a person applies for retirement before this, he will receive a lesser amount.

Effect of taking retirement at the age of 62

Some people prefer to take advantage of Social Security at the age of 62 by taking early retirement so that they can enjoy their retirement and get a break from work. However, doing so reduces their monthly pension by about 30%.

In contrast, some people choose to postpone retirement till the age of 70, which gives them an additional 24% benefit. This happens because the longer you postpone retirement, the more amount you get every month.

Changes in Social Security rules in 2025

The full retirement age (FRA) is not the same for all US citizens. It is gradually increasing and is going to reach 67 years.

For example, at the beginning of 2024 and 2025, this age was 66 years 8 months, but now it has become 66 years 10 months. SSA has made this change keeping in mind the increasing life expectancy of American citizens. Earlier FRA was only 65 years, but now people are getting older than before, which required SSA to change the retirement age.

What will be your full retirement age in 2025?

If you were born in 1960 or later, then your full retirement age (FRA) will be 67 years. This means that people who will be 62 years old in 2025 will have an FRA of 67 years.

If you’re not sure when your full retirement age will come, the SSA has provided a “Retirement Age Calculator” for this. This calculator calculates your FRA based on your date of birth.

You can take advantage of this useful tool by visiting the SSA’s official website:

Why is your Social Security statement important?

You can download your Social Security Statement by visiting the SSA website. It will contain information on how much money you will receive at various ages, whether you are eligible for retirement, and whether you are eligible for other benefits such as Social Security Disability Insurance (SSDI).

Conclusion

If you are planning to retire early, it is important to note that your monthly pension will be reduced if you retire at the age of 62. On the other hand, if you wait until age 70, you can get an additional 24% more benefit.

Social Security rules are changing in 2025, and your FRA can increase to 67 years. Therefore, plan your retirement in advance using the Retirement Age Calculator and Social Security Statement provided by SSA so that you do not face any financial problem in the future.