New Social Security Retirement Age Rules For 2025- What You Need To Know
The Full Retirement Age (FRA) is the age at which individuals are eligible to receive full Social Security retirement benefits. In 2025, the FRA has increased to 66 years and 10 months for those born in 1959. For individuals born in 1960 or later, the FRA is set at 67 years.
It’s important to note that while you can begin receiving Social Security benefits as early as age 62, doing so will result in a permanent reduction in your monthly benefit amount.
Conversely, delaying benefits beyond your FRA can increase your monthly payments up to age 70.
Social Security Payment Schedule for 2025
Social Security payments are distributed based on the beneficiary’s birth date. Here’s the 2025 payment schedule:
| Birth Date Range | Payment Day (Monthly) |
|---|---|
| 1st–10th | 2nd Wednesday |
| 11th–20th | 3rd Wednesday |
| 21st–31st | 4th Wednesday |
For those who began receiving benefits before May 1997, payments are made on the 3rd of each month.
Cost-of-Living Adjustment (COLA) for 2025
To help beneficiaries keep up with inflation, the Social Security Administration has announced a 2.5% Cost-of-Living Adjustment (COLA) for 2025.
This increase means that the average monthly benefit for retired workers will rise to approximately $1,997.13.
Impact of Delayed Retirement
Delaying your Social Security benefits beyond your FRA can lead to increased monthly payments. For each year you delay, up to age 70, your benefit amount increases by approximately 8%.
For example, if your FRA benefit is $2,000 per month, delaying until age 70 could increase it to around $2,560 per month.
Additional Considerations
- Earnings Limits: If you’re under FRA and continue to work while receiving benefits, your benefits may be reduced if your earnings exceed certain limits. In 2025, the limit is $23,400.
- Supplemental Security Income (SSI): For SSI recipients, payments are typically made on the 1st of each month. However, if the 1st falls on a weekend or holiday, payments are made on the preceding business day.
Staying informed about the latest Social Security retirement age rules and payment schedules is crucial for effective retirement planning.
By understanding these changes, you can make informed decisions that align with your financial goals and ensure a more secure retirement.
FAQs
What is the Full Retirement Age (FRA) for individuals born in 1959?
For those born in 1959, the FRA is 66 years and 10 months.
Can I start receiving Social Security benefits at age 62?
Yes, but your monthly benefits will be permanently reduced compared to waiting until your FRA.
How does working while receiving benefits affect my payments?
A: If you’re under FRA and earn more than the annual limit ($23,400 in 2025), your benefits may be reduced.