Social Security Retirement Age Officially Now 67: Officially, the age 65 retirement benchmark is no longer in use. A permanent change in the way and timing of future retirees’ ability to receive full benefits will take place in 2025 when Americans born in 1960 or later reach the full retirement age (FRA) of 67.
This long-awaited change is the culmination of a gradual adjustment that was started by the Social Security Amendments of 1983, rather than the result of new legislation. Over the previous forty years, the FRA has been gradually increasing in two-month increments; for those who will reach that age in 2027, the climb officially ends at age 67.
The implications of the change in the Social Security retirement age
- 1959 birth year? With effect from 2025, your full retirement age has been raised to 66 years and 10 months.
- Born in 1960 or after? To receive all of your scheduled Social Security benefits, you must be 67 years old.
- Claim at 62? Only 70% of your entire benefit will be paid to you permanently.
- Wait until 70? Your monthly check can be increased to 132% of your FRA benefit.
For instance, someone who files for Social Security at age 62 would receive about $1,341/month, compared to the current average of $1,916/month. This difference adds up over time.
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Why the Retirement Age Was Raised?
The average American received Social Security for roughly 13 years when the FRA was set at 65 in the 20th century. That average has now increased to 18 to 20 years, putting a great deal of strain on the Social Security trust fund, which is expected to run out of money by 2035 if nothing is done.
By raising the age of full retirement to 67, the government hopes to lower overall benefits and motivate senior citizens to continue working, maintaining the system’s solvency.
What to Do Right Away When You’re 67 and Planning for Retirement?
This change requires you to modify your approach if you’re getting close to retirement. Experts recommend: .
Create a cash buffer: To bridge the gap between working and receiving benefits, put aside 18 to 24 months’ worth of living expenses in a high-yield account.
Phase out full-time employment: To preserve income and health insurance, take into account part-time jobs or phased retirement plans.
Bridge health coverage: The age of 65 is still the starting point for Medicare eligibility. To fill the gap, look into COBRA, part-time jobs with benefits, or ACA plans.
Delay sensibly: You can accrue up to 32% more in delayed retirement credits by the time you are 70 years old for every month that you postpone your FRA.
Employ tax-smart withdrawals: To lower future tax obligations, tap taxable accounts first and think about converting to a Roth between the ages of 63 and 67.
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What Hasn’t Changed?
Although your benefits will be less, you can still make an early claim at age 62.
Benefits for survivors and spouses are unaffected.
COLA (annual cost-of-living adjustments) will remain in place. Preliminary projections for 2026 indicate a 2–5% rise.
Officially, the saying “retire at 65” is no longer relevant. The calendar will not be going back to the previous Social Security retirement age of 67. The change necessitates more intelligent planning, adaptable tactics, and a candid assessment of income, savings, and healthcare options for Americans nearing retirement.
The 42-year transition will come to an end in 2027 when the first generation of Americans born in 1960 turns 67 and is eligible to receive full Social Security benefits. Understanding the regulations can have a significant impact on your financial future, regardless of whether you file early, postpone, or work part-time.
