June 14, 2025 – USA: The familiar retirement benchmark of age 65 is officially a thing of the past. Starting in 2025, Social Security’s full retirement age (FRA) will now be 67 years for Americans born in 1960 or later — marking a permanent shift in how and when future retirees can collect full benefits.
This long-anticipated change is not the result of new legislation, but rather the final phase of a gradual adjustment set in motion by the 1983 Social Security Amendments. The FRA has been slowly rising in two-month increments over the past four decades — and the climb officially ends at 67 for those turning that age in 2027.
What the Social Security Retirement Age Change Means
Born in 1959? Your full retirement age is now 66 years and 10 months, taking effect in 2025.
Born in 1960 or after? You’ll need to reach 67 to collect 100% of your scheduled Social Security benefits.
Claim at 62? You’ll permanently receive only 70% of your full benefit amount.
Wait until 70? You can boost your monthly check to 132% of your FRA benefit.
As an example, with the average Social Security benefit currently at $1,916/month, someone claiming at 62 would receive approximately $1,341/month — a difference that adds up significantly over time.
Why the Retirement Age Was Raised
When the FRA was set at 65 in the 20th century, the average American collected Social Security for about 13 years. Today, that average has stretched to 18–20 years, placing immense strain on the Social Security trust fund, which is projected to run short by 2035 if changes aren’t made.
By pushing full retirement to 67, the government aims to reduce total payouts and encourage older Americans to stay in the workforce longer, preserving the solvency of the system.
Planning for Retirement at 67: What to Do Now
For those nearing retirement, this shift means adjusting your strategy. Experts recommend:
Build a cash buffer: Save 18–24 months of living expenses in a high-yield account to cover the gap between working and claiming benefits.
Phase out full-time work: Consider part-time roles or phased retirement schedules to maintain income and health coverage.
Bridge health coverage: Medicare eligibility still begins at 65. Explore ACA plans, part-time jobs with benefits, or COBRA to cover the gap.
Delay wisely: Each month you wait past your FRA earns you delayed retirement credits — up to 32% more by age 70.
Use tax-smart withdrawals: Tap taxable accounts first, and consider Roth conversions between ages 63–67 to reduce future tax burdens.
What Hasn’t Changed
- You can still claim early at 62, but with reduced benefits.
- Spousal and survivor benefits remain intact.
- Annual cost-of-living adjustments (COLA) will continue. Early forecasts for 2026 suggest a 2.5% increase.
The phrase “retire at 65” is now officially outdated. The new Social Security retirement age is 67, and the calendar won’t be changing back. For Americans approaching retirement, the shift calls for smarter planning, flexible strategies, and an honest look at income, savings, and healthcare options.
By 2027, the first group of Americans born in 1960 will turn 67 and unlock full Social Security benefits — officially closing the 42-year transition. Whether you claim early, delay, or work part-time, knowing the rules can make all the difference in your financial future.