Marina
For decades, age 65 has symbolized retirement in the United States. But now, policy shifts are quietly redefining what “retirement age” means.
Starting in 2025 and 2026, changes to the Full Retirement Age (FRA) for Social Security are phasing out 65 as the benchmark for full benefits. This means more Americans will have to delay claiming full Social Security benefits and rethink their retirement plans.
What Is the Full Retirement Age (FRA), and What’s Changing?
The Full Retirement Age (FRA) is the age at which a person can claim 100 % of their Social Security retirement benefit without reduction. Historically, FRA was closer to 65, but over the decades it has gradually shifted upward.
- People born between 1943 and 1954 have FRA = 66 years
- For those born in 1955–1959, FRA increases in two‑month increments
- For those born in 1960 or later, FRA = 67 years
That means Americans born in 1960 or later can no longer expect to claim their full Social Security benefit at age 65 — they must wait until 67.
FRA by Birth Year Table
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943 – 1954 | 66 years |
| 1955 | 66 years + 2 months |
| 1956 | 66 + 4 months |
| 1957 | 66 + 6 months |
| 1958 | 66 + 8 months |
| 1959 | 66 + 10 months |
| 1960 or later | 67 years |
This schedule reflects a gradual phase‑in mandated decades ago to keep Social Security sustainable.
Why Is the Retirement Age Moving Up?
Several key factors drive this shift:
- Longer life expectancy — Americans live longer today, so raising FRA helps balance benefit payouts.
- Financial sustainability — pushing FRA upward reduces system strain and helps preserve solvency.
- Demographic shifts — fewer workers per retiree mean the program needs adjustments.
- Previous legislation — the 1983 Social Security Amendments laid out this gradual increase.
In effect, the era of automatically “retiring at 65” is ending for many.
How Early or Delayed Claims Work
You don’t have to wait until FRA to claim benefits — but claiming earlier or later comes with tradeoffs:
- Earliest claim age = 62: But you receive reduced benefits permanently.
- For those with FRA = 67, claiming at 62 may cut benefits by up to 30 % compared to full benefit.
- Delaying past FRA up to age 70 yields delayed retirement credits — about 8 % extra benefit per year delayed.
Here’s a rough illustrative impact (for someone whose FRA = 67):
| Claim Age | Approx Benefit (relative to full benefit) |
|---|---|
| 62 | ~70 % |
| 65 | ~86.7 % |
| 67 (FRA) | 100 % |
| 70 | ~124 % |
Delaying by three years (from 67 to 70) can increase your benefit by roughly 24 % over what it would have been at FRA.
Who’s Affected and When
- People born in 1960 or later will see their full Social Security age fixed at 67.
- For those born in 1959, the FRA increases to 66 years + 10 months (effective in 2025).
- Anyone born before 1960 keeps their scheduled FRA under the old table.
Hence, someone turning 65 in 2025 (born in 1960) cannot claim full benefits until age 67 (2027).
What This Means for Retirement Planning
- Reassess your timeline — you may need to work longer or tap other savings if you expected full benefits at 65.
- Bridge strategies — part‑time work, using 401(k) or IRA withdrawals, or phased retirement may help for the interim years.
- Optimize claim timing — weigh health, life expectancy, and income needs when choosing whether to claim early or delay.
- Adjust expectations — many will see reduced monthly benefit if claiming before FRA, and waiting can boost it.
- Estate planning — raising FRA influences spousal, survivor, and disability benefit timing as well.
The traditional view of retiring at 65 is undergoing a seismic shift in the U.S. With Full Retirement Age now rising to 67 for those born in 1960 or later, many Americans must “say goodbye to retirement at 65.”
This policy change reflects demographic realities, longer life spans, and the need to bolster Social Security’s finances.
As you approach retirement, it’s more important than ever to revisit your strategy: consider when to claim, how to supplement income, and how your decisions will play out over time. The age you once planned to retire at may no longer align with the new rules — preparing now is key.