Social Security Full Retirement Age: These days, one question is being discussed the most among the people planning retirement in America – is there any change in the Full Retirement Age (FRA) of Social Security in 2025? Many people feel that something is different this time, but the truth is that there is not going to be a big change, as some people are thinking.
Actually, there is no need to worry about the Full Retirement Age of Social Security. In 2025, this age will be the same as per the procedure set in earlier years. If you have planned your retirement properly, then you will not have any problem in getting a good retirement check. Still, to get maximum benefits, it is important to check all the information thoroughly.
How is the Full Retirement Age decided?
According to a law passed in the 1980s, the Full Retirement Age of Social Security is being gradually increased every year. According to the law passed in 1983, this age has been increased over time keeping in mind the increase in life expectancy of people.
According to the Social Security Administration (SSA), your annual income over your entire tenure and the number of years you have worked determines what your Full Retirement Age will be. Although this age has now increased, most Americans still consider 65 years as the normal age for retirement.
What will change in 2025?
There is not going to be any major change in the Full Retirement Age in 2025. This means that if you are planning to retire in 2025, then you do not need to worry about any unexpected rule change.
Yes, it is worth noting that your Full Retirement Age will be decided according to your date of birth. That is, those who are born in 1960 or later, their FRA will be 67 years.
Advantages and disadvantages of taking Social Security benefits at 62, 67, and 70
1. Taking Social Security at age 62
If you apply for Social Security at age 62, you start receiving benefits early. But there is a caveat to this option – your monthly amount will be permanently reduced.
If you start taking benefits at 62, your monthly Social Security amount is reduced by 5/9 percent per month if you take it before your full retirement age and by 5/12 percent per month if you take it more than 36 months earlier.
2. Taking Social Security at age 67
This age is considered Full Retirement Age for those born in 1960 or later. Taking Social Security at this age is beneficial because you get your full monthly amount – there is no reduction.
However, if you reach age 80 or older, this option could leave you financially behind because you didn’t postpone Social Security benefits long enough.
3. Taking Social Security at age 70
The biggest advantage of taking benefits at this age is that your monthly Social Security amount is the highest. It can be anywhere from 24% to 32% higher than at full retirement age.
The risk, however, is that no one knows how long they will live. If you pass away early, you won’t be able to take full advantage of that higher amount.
Will FRA increase in 2025?
This is a very important question and the answer is – no. There is no additional increase in Full Retirement Age in 2025. This means that you can retire whenever you want, according to your plan.
Yes, one thing is definitely worth keeping in mind – the later you apply for Social Security benefits, the higher your monthly amount will be. That is, the difference in benefits depends on your age.
Conclusion
The confusion spreading about the Social Security Full Retirement Age in 2025 is largely based on a misunderstanding. Neither any new law has come nor any extraordinary change has taken place. If you have planned your retirement well, then you will not have to face any problem related to Social Security in 2025.
It is important to understand that your age and the time of application directly affect the amount of Social Security benefits. Therefore, make a decision wisely and check every information in time, so that your retirement future remains secure and balanced.
FAQs On Social Security Full Retirement Age
Q. Is there any change to the Social Security Full Retirement Age in 2025?
A. No, there is no additional increase to the FRA in 2025. As before, the age will be determined by your date of birth.
Q. Is it right to take Social Security at age 62?
A. This may be good if you want benefits early, but your monthly amount will be permanently reduced.
Q. When will I get the most Social Security money?
A. Your monthly amount is the highest when you take Social Security benefits at age 70.