Social Security Full Retirement Age Rises To 67 For 1960 Born

Photo: AARP

India-West News Desk

WASHINGTON, DC – A major shift is coming to Social Security in 2025, as the full retirement age (FRA) officially increases to 67 for Americans born in 1960. This marks the culmination of a gradual change set in motion decades ago, now impacting millions nearing retirement.

Key Changes Taking Effect in 2025

• New Full Retirement Age:
  • Those born in 1960 will reach age 65 in 2025—but must wait until age 67 to claim full Social Security benefits.
  • This is the final step in a phased increase in the FRA, initiated by the 1983 amendments to the Social Security Act.
• Impact of Early or Delayed Claims:
  • Benefits can still be claimed as early as age 62, but at a permanent reduction of about 30%.
  • For example, someone eligible for $1,000/month at 67 would receive only $700/month at 62.
  • Waiting until age 70 increases monthly payments to $1,240, thanks to delayed retirement credits.

Retirement Age by Birth Year

• 1943–1954: Full retirement age = 66
• 1955: 66 years, 2 months
• 1956: 66 years, 4 months
• 1957: 66 years, 6 months
• 1958: 66 years, 8 months
• 1959: 66 years, 10 months
• 1960 and later: 67

Americans born after 1960 will also see age 67 as their full retirement age in future years. For example, someone born in 1961 will turn 65 in 2026 and qualify for full benefits in 2028.

Demographic Surge

• Nearly 4 million Americans are expected to turn 65 in 2025.
• This wave of retirees—part of the ongoing “silver tsunami”—marks the last cohort to be affected by the 1983 FRA adjustment.

Why the Change?

• The adjustment was designed to reflect longer life expectancy and help maintain Social Security’s financial stability.
• It represents the system’s attempt to stay solvent amid growing concerns about its long-term viability.

Outlook

• A 2024 Social Security Trustees report warns the trust fund could run out by 2033.
• If depleted, the program would only cover 77% of scheduled benefits.

Political Proposals

Republican lawmakers have backed raising the retirement age further to reflect longevity trends.

• In March 2024, the Republican Study Committee proposed “modest” age adjustments for future retirees.
• Democrats, including Sen. Sheldon Whitehouse and Rep. Brendan Boyle, have reintroduced the Social Security and Medicare Fair Share Act:
  • The bill would lift the payroll tax cap and apply Social Security taxes to income over $400,000, which is currently exempt beyond $168,600.