The Social Security Administration (SSA) online calculator shows that some groups of beneficiaries are going to achieve full retirement age (FRA) in 2025. It is one modification that was made due to the increasing life expectancy among Americans and updates that have been made gradually through policy changes over several decades.
Who reaches full retirement age in 2025?
The Social Security Administration has made minor adjustments to the FRA to mirror the national demographic trends. For those born before 1960, the FRA is incrementally increased by two months for every birth year. For those born after 1960, the FRA is 67 years.
For 2025, individuals born between May 1958 and February 1959 will reach their FRA. This includes:
- People born in the last eight months of 1958.
- Individuals born in the first two months of 1959.
These people will be fully entitled to claim their full benefits under the Social Security Act. Note that an early benefit can be claimed as early as the age of 62. However, early entitlement will result in lower benefits, as in the case of early claimants who may have their benefits reduced by as high as 25% if they claim benefits at the age of 62.
Comparatively, an individual attaining FRA in the year 2024 was born between July 1957 and April 1958. Consequently, this group was eligible for the maximum Social Security benefit last year.
Cost-of-living adjustments and benefits in 2025
Another important update for 2025 lies in the Cost-of-Living Adjustment or COLA. For the beneficiaries to keep up with inflation, SSA imposed a 2.5% COLA to be effective starting this year. Because of this, average monthly Social Security benefits jumped from $1,927 to $1,976, a modest financial boost for retirees.
The COLA increase is a part of a long-term policy that aims to ensure that Social Security payments reflect changes in the cost of living. Most favorably, it benefits people who rely on a high amount of such benefits for retirement income.
Historical context for FRA changes
The FRA has not always stood at 67 years of age; for several years, it used to be fixed at 65. However, since 1983, Congress has come up with a piece of legislation that would be phased in gradually to increase the FRA owing to increases in life expectancy and the general health of older Americans.
The SSA explains on its website:
“Full retirement age, also known as the normal retirement age, was 65 for several decades. In 1983, Congress passed a law to gradually raise the age for the fact that people generally live longer and are generally healthier at older ages.
These incremental adjustments could ensure Social Security’s long-term viability while enabling the system to balance the needs of retirees with the reality of increased longevity.
With the FRA changing, people near retirement are advised to weigh their possible options. Whether early retirement or waiting for the FRA, it is extremely relevant to know what the impact of either decision will be on the benefit maximization.
