Social Security Retirement 67 years old: Will be transferred to 65 years old? Americans born in 1960 have increased their social security retirement age to 67 – major changes in benefits that will not be ignored in 2025
Retirement age growth is part of a long-term update that began in 1983. Lawmakers then passed amendments to the Social Security Act to ensure that the program can keep up with people’s lives longer. But until now, as the first group born in 1960 was 65 years old, it felt the full impact.
Why is the 67-year-old now a new number?
If you were born in 1960, you will reach 65 in 2025, but you won’t be able to collect all Social Security benefits until you are 67 years old. This is two years behind the traditional retirement age of 65, which has been around for decades.
This adjustment has been slowly analyzed. People born before 1955 are still eligible for full benefits of 66 years or earlier. For example:
- Born in 1955: FRA is 66 and 2 months old
- Born in 1956: FRA is 66 and 4 months old
- Born in 1957: FRA is 66 and 6 months old
- Born in 1958: FRA is 66 and 8 months old
- Born in 1959: FRA is 66 and 10 months
- Born in 1960 or later: FRA is now 67
As more Americans live and retire later, this gradual growth is designed to help social security stabilize financially.
Can you still receive social security at the age of 62?
Yes, you can charge Social Security benefits starting at age 62, but there is one thing you gain – your monthly payments will be permanently reduced. Assuming your full retirement benefit is $67 is $1,000. If you decide to start from 62, you can only get $700 per month. This is a 30% cut–life. However, the FRA waiting for you can reward you. If you postpone until you are 70, you may receive $1,240 per month. The remaining three years increased by 24%.
It all depends on your financial needs and how long you expect to live. However, the choices and consequences are clear.
Who will be eligible for all social security benefits in 2025?
Not everyone who is over 65 years old in 2025 is eligible for full social security benefits. Only those born before 1960 can reach the full retirement age of that year. If you were born in 1960, you must wait until 2027 (at the age of 67) to ask you for full monthly payment.
This is a crash:
- If you were born in 1959 and your FRA is 66 months and 10 months, you will hit it sometime in 2025.
- If you were born in 1960, your FRA happens to be 67 years old and will not arrive until 2027.
This is important because early retirement means permanently locking in smaller gains while waiting ensures you get all rights.
Why is the change in retirement at the age of 67 now happening?
This time is not random. According to population trends, in 2025, it is estimated that about 4 million Americans will turn 65. Experts call it the “Silver Tsunami”, which is a wave of elderly people who retire immediately.
Michael Ryan, financial expert and founder of Michaelryanmoney.com, told Newsweek:
“This is not only a bureaucratic adjustment, but also a response to the financial challenges facing increasingly anticipated living and social security.”
In short, the system needs to go a step further than ever before. People live longer, absorb more years, and contribute pressure to plans that are already under pressure.
Will social security run out of money?
Social Security Trust Funds are facing shortages. If nothing changes are made, the pension fund could go bankrupt in 2033, according to the Social Security Commission’s 2024 report. This means that starting from 2033, Social Security will only pay 77% of the scheduled benefits.
Legislators have profound differences on how to resolve the problem:
- Republicans use longer life expectancy as an age to drive higher retirement age.
- The Republican Research Committee proposed in 2024 to “make moderate adjustments to the retirement age of future retirees.”
Meanwhile, Democrats have different approaches.
Senator Sheldon Whitehouse and representative Brendan Boyle reintroduced the Social Security and Medicare Fair Share Act. Their plan will increase their earnings by more than $400,000 in payroll taxes. Currently, any income above $168,600 is not taxable.
Boyle said in a press release:
“The bill will protect social security and health insurance for generations by making the wealthiest Americans pay what they owe.”
So far, there is no bipartisan agreement, but reforms are needed.
As retirement age increases, what should Americans do now?
If you are approaching retirement, the most important thing you can do is know your full retirement age and understand your choices.
Here are some quick tips:
- Check your FRA based on your birth year. It is more important than ever.
- Plan ahead – Will you retire early by then, wait until FRA, or delay until 70.
- Monitoring legislation. Any changes in Congress could affect your future interests.
- When choosing your claim age, consider your life expectancy and financial situation.
With the full retirement age of Social Security at 67, it is important to understand how this affects your schedule, monthly benefits and long-term plans.
FAQ:
Q: What is the total retirement age for social security in 2025?
A: For anyone born in 1960, this is 67 years old.
Q: Can I still retire as soon as possible and get social security at the age of 62?
A: Yes, but your monthly benefits will be permanently reduced.
