Social Security Full Retirement Age To Increase Again: So When Can You Officially Retire?

If you’re nearing retirement age in 2025, there are some drastic changes ahead for your pending Social Security benefits.

In 2025, Social Security recipients will face a notable change with an increase in the full retirement age. This age determines when workers can claim their full retirement benefits based on a lifetime of earnings.

Traditionally set at 65, the full retirement age began rising after Congress passed a law in 1983 to account for increasing life expectancy, according to the Social Security Administration (SSA). According to AARP, the new full retirement age is 66 years and 8 months for people born in 1958 and 66 and 10 months for those born in 1959.

Thus, United States citizens born May 2, 1958, through Feb. 28, 1959, will reach retirement age in 2025. The full retirement age settles at 67 for people born in 1960 and thereafter.

The minimum age to begin collecting Social Security benefits is 62. However, taking one’s benefits at that time could find recipients facing a permanent reduction in wages, by as much as 30%. However, if one continues to work, monthly benefits increase substantially. An extra 8% a year is added to a person’s monthly dividend until the age of 70. That’s when a person can claim their maximum benefits.

How Does a Person Receive Enough Credits To Qualify for Social Security?

We calculate your #retirement payment by assessing how much you've earned throughout your life. Check your #SocialSecurity account today to find out how much you may get when you apply. https://t.co/WH9kmNxT3W. pic.twitter.com/EnHpvEJlia

— Social Security (@SocialSecurity) December 18, 2024

Workers must earn at least 40 Social Security credits to be eligible for benefits, according to the official SSA website. You earn credits when you work and pay Social Security taxes.

The website explains, “The number of credits does not affect the amount of benefits you receive. We use the number of credits you’ve earned to determine your eligibility for retirement or disability benefits, Medicare, and your family’s eligibility for survivors benefits.”

It continues, “Credits are based on your total wages and self-employment income for the year. You might work all year to earn 4 credits, or you might earn enough for all 4 in less time. The amount of earnings it takes to earn a credit may change each year. In 2024, you earn 1 Social Security and Medicare credit for every $1,730 in covered earnings each year. You must earn $6,920 to get the maximum 4 credits for the year.”

The average total of one’s earnings throughout their years spent working will determine how much monthly payment they receive from Social Security. Each year, benefits are adjusted to account for inflation. In 2025, the annual cost-of-living adjustment will be 2.5%, the smallest annual COLA hike since 2021. For most Social Security beneficiaries, the new COLA goes into effect with their January payment.