The rules around when you can retire and claim full Social Security benefits are changing in 2025, affecting millions of Americans. If you’re planning for retirement, here’s what you need to know and why it matters.
Retirement age is all about timing. It’s the age when you can start getting the full monthly Social Security benefits you’ve earned. You can still claim benefits as early as age 62, but there’s a catch—your monthly checks will be smaller if you claim them early. The closer you are to full retirement age when you start collecting benefits, the bigger your monthly payment will be.
Now, for the changes. In 2025, full retirement age is shifting for many people, depending on the year they were born. If you were born between 1943 and 1954, your full retirement age is 66. But if you were born after that, you’ll have to wait a little longer.
For example:
- People born in 1955 will reach full retirement age at 66 and two months.
- Those born in 1956 will hit it at 66 and four months.
- If you were born in 1957, it’s 66 and six months, and so on.
This gradual increase continues until those born in 1960 and later reach a full retirement age of 67.
Here’s how it plays out for 2025 specifically. If you were born in the last eight months of 1958, you’ll reach full retirement age this year. If your birthday falls in the first two months of 1959, you’ll get there by the end of the year.
So, why is this happening? Michael Ryan, a financial expert, explains it’s not just about numbers on paper. These changes are tied to people living longer and the financial challenges facing the Social Security system. It’s worth noting, though, that you can still start collecting benefits as early as 62. The difference is that waiting until full retirement age—or even beyond, up to age 70—means you’ll get a bigger check every month.
To put things into perspective, Alex Beene, a financial literacy teacher, says that these gradual changes in retirement age were decided by Congress years ago. They’re not new laws, just part of a plan to shift retirement age a little at a time for future retirees.
And here’s some good news for 2025: the cost-of-living adjustment (COLA) is increasing by 2.5 percent. This means the average monthly payment will go from $1,927 to $1,976. That little bump might not seem like much, but it can make a big difference for seniors managing everyday expenses.
If you’re nearing retirement, this is your reminder to take a close look at your options. Deciding when to start collecting Social Security is a big deal—it can shape your financial future for years to come. Whether you claim early, wait until your full retirement age, or even hold off until 70, the choice is yours. Just make sure it’s an informed one.
