The retirement age for many Americans to qualify for Social Security payments will increase by two months, effective Jan 2.
The change does not apply to individuals born between 1943 and 1954, for whom the full retirement age was set at 66 by the Social Security Administration (SSA). For those born after 1954, the age for retirement then increases in two-month increments for each birth year thereafter.
The gradual increase in the full retirement age is part of a long-term plan implemented by the SSA to cut costs due to financial challenges that emerged partially due to increasing life expectancies, according to information on the administration’s website.
For example, those born in 1955 can fully retire at the age of 66 and two months, 1956 birth years at age 66 and four months, and the same for each year thereafter until the full retirement age reaches the maximum of 67 years, which is for those born in 1960 and later.
In 2025, those born in the first four months of 1958 reached their full retirement age of 66 and 8 months last year, and those born in the last eight months of that year will reach full retirement age in 2025. Those born in 1959 will reach full retirement age near the end of 2025, under the same rules.
While the full retirement age is increasing, Americans still have the option to claim their benefits as early as age 62. However, choosing to do so before reaching full retirement age will permanently reduce monthly payments.
For example, those born in 1958 who choose to start their payments at age 62 will see their monthly payments reduced by about 28.3 percent compared to what they would receive at their full retirement age of 66 and 8 months.
Conversely, those who delay claiming their benefits beyond their full retirement age will see an increase in their monthly payments. The administration adds 8 percent per year to the benefit amount for each year an individual delays claiming up to age 70.
On the SSA’s information page about retirement benefits, the administration emphasizes that the decision of when to start receiving payments is a personal one and depends on various factors, including health, financial situation, and retirement plans. The SSA encourages all Americans to take advantage of the resources available on the SSA website when making their decision.
The change in full retirement age does not affect Medicare eligibility, which remains at age 65. The administration advises individuals to sign up for Medicare three months before their 65th birthday, even if they plan to delay retirement payments.
The SSA has stated that Social Security was never intended to be the sole source of retirement income and recommends that individuals consider other forms of retirement savings and investments.
Those seeking more information about the benefits and how they work are encouraged to create a “my Social Security” account on the SSA’s website at ssa.gov/myaccount.