Goodbye to Retirement at 67: The New Age for Collecting Social Security Changes Everything in the U.S.

Starting in 2025, the full-retirement age for Social Security changes—here’s what it means for your future benefits.

Full-Retirement Age Inches Up

A small change with a big impact: Americans born in 1959 will see their full-retirement age (FRA) shift from 66 years, 8 months to 66 years, 10 months. Meanwhile, those born in 1960 or later will need to wait until age 67 to claim their full, unreduced benefits.

These adjustments stem from the 1983 Social Security Amendments, which gradually raised the FRA in two-month increments beginning in 2000. Each generation simply faces a slightly later retirement milestone.

Early vs. Delayed Claims: The Numbers Game

If you opt to start receiving benefits at age 62, you’ll face a lifetime reduction—about 29% less per month for the 1959 birth cohort. Wait until after FRA, however, and you gain back 0.67% per month delayed, up to a 32% increase if you retire at age 70.

Here’s a quick snapshot of how timing affects your benefits:

Even missing full-retirement age by a couple months can shave 1.07% off each payment, so every month counts.

Why This Matters

Many Americans expected to retire around age 67. But now, unless you’re part of the 1958 group or younger, the standard FRA keeps inching upward. The latest shift means everyone born in or after 1960 must wait until 67 for full full benefits.

Claiming early is tempting—but reduces lifetime earnings. Waiting costs more years of work but greatly boosts monthly checks. It’s a financial balancing act.

Transitional Options: Bridge the Gap

For those not ready to wait but wanting more than early withdrawals, there are workarounds:

• Reduced-hours roles, consulting, part-time work

• Spousal or survivor benefits while you delay your own

• Investment income or other passive cash streams

A slower path toward full retirement can protect your earnings while keeping you active and engaged.

Simplify Retirement Planning

• Check your birth year—and know your personal FRA

• Quantify early claim penalties vs. delayed credits

• Create a fallback plan for replacement income

• Revisit your strategy if life circumstances or laws shift

The Bottom Line

The full-retirement age is creeping steadily upward—an ongoing result of reforms made decades ago. For those born from 1959 onward, options narrow: either retire early and accept reduced benefits or wait and secure a stronger financial foundation.

Your retirement choice is about more than age—it’s a long-term decision that impacts your financial security. Consider your health, savings, and work intentions carefully.