Social Security Retirement Age Officially Increases to 67 for Those Born in 1960
A significant shift in retirement planning has taken effect in 2025, as the full retirement age (FRA) for Social Security benefits officially increases to 67 years old for Americans born in 1960. This marks the culmination of changes initiated by a 1983 amendment to the Social Security Act and is intended to reflect rising life expectancies and stabilize the long-term finances of the Social Security program.
What This Means for Retirees Born in 1960
Nearly 4 million Americans turning 65 this year will not be eligible for full Social Security benefits until they reach age 67. This change aligns with the final phase of the FRA increase that has gradually risen from 65 for those born before 1938 to 67 for those born in 1960 or later.
Early Retirement Comes at a Cost
While Americans can still choose to retire as early as age 62, doing so comes with reduced benefits. Retiring five years early at 62 will result in approximately a 30% reduction in monthly payments. For example, someone eligible for $1,000 a month at full retirement age would receive only $700 if they retire early.
Conversely, delaying retirement beyond age 67 can result in increased benefits. Workers who postpone retirement until age 70 can receive up to a 24% boost, totaling $1,240 per month based on the same $1,000 FRA estimate.
Who Is Not Affected by the Change
The Social Security Administration confirms that the new retirement age does not affect individuals born before 1960. The full retirement age remains staggered based on birth year:
- Born 1943–1954: FRA is 66
- Born 1955: FRA is 66 and 2 months
- Born 1956: FRA is 66 and 4 months
- Born 1957: FRA is 66 and 6 months
- Born 1958: FRA is 66 and 8 months
- Born 1959: FRA is 66 and 10 months
