
As we enter 2025, many Americans are reevaluating their retirement plans and considering how changes to Social Security may affect their financial future. Understanding retirement ages and benefits is more important than ever. With nearly 65 million individuals in the U.S. currently receiving Social Security benefits, keeping informed can make a significant difference in how you plan your retirement.
In this post, we aim to clarify what the “full retirement age” means, when you can start collecting Social Security benefits, and how these factors impact your financial planning.
Understanding Full Retirement Age
Traditionally, retirement at age 65 has been the norm. However, studies show that the average American begins retirement at age 62. Interestingly, this age is also the earliest you can start drawing Social Security benefits.
The rewards of waiting to collect Social Security can be significant. If you delay claiming benefits, your monthly checks can increase. For instance, if you wait until age 70, your benefits can grow to about 132% of your base amount compared to what you would receive at your full retirement age.
Full retirement age is currently 67 years for individuals born in 1960 or later. This change stemmed from a 1983 law aimed at adjusting benefits to reflect rising life expectancies.
Why Does Full Retirement Age Matter?
Knowing your full retirement age is crucial because claiming benefits earlier permanently reduces them. For example, if you claim benefits at age 62, you might see a reduction of up to 30% compared to what you would receive at full retirement age.
Experts emphasize the importance of understanding these details. Joel Eskovitz, a senior director at the AARP Public Policy Institute, states: “Every month early you claim, you get a reduction.” Knowing your full retirement age is essential for effective retirement planning.

How can I get the most Social Security benefits?
To receive what are deemed full Social Security benefits, you need to wait until at least your “full retirement” age. For those born from 1955 and on, the retirement ages are as follows:
- 1955: 66 years and two months
- 1956: 66 years and four months
- 1957: 66 years and six months
- 1958: 66 years and eight months
- 1959: 66 years and 10 months
- 1960 and later: 67 years of age
Delaying your benefits claim a bit longer can also be advantageous. For every full year you postpone claiming benefits beyond your “full retirement age,” your benefit grows by 8% annually. This delayed retirement credit continues to increase until age 70.
For example, if you applied for Social Security this year at “full retirement age,” the maximum benefit would be $3,822, according to the Social Security Administration website. However, if you retire this year at age 62 and file, your maximum benefit would be $2,710. If you are age 70 and apply this year, your maximum benefit would be $4,873.
There is no definitive answer for when to file for Social Security. “This is a personal decision, so you have to consider various factors, including your current employment, health, family, and health history,” Eskovitz stated, noting that AARP offers a Social Security resource center online. “But it is also a one-time decision. If you claim before your full retirement age, that penalty will remain for the rest of your life. So that’s just something to consider.”
What is the Social Security 2025 Cost of Living Adjustment (COLA)?
To ensure retiree benefits keep pace with inflation, Social Security routinely includes a Cost of Living Adjustment (COLA). Starting in January 2025, Social Security benefits will rise by 2.5%.
This adjustment means the average Social Security recipient will receive an additional $50 per month, raising the estimated average monthly benefit from $1,927 to $1,976, according to the SSA. Retired couples who receive benefits together will experience an increase of $75, bringing their estimated average monthly benefit to $3,089.

How important is your full retirement age for Social Security?
There are varying opinions, but according to Wettstein, “the truly significant ages are 62, when you first become eligible for Social Security, and 70, the maximum age for claiming.” He noted, “Each year you postpone claiming from age 62 until you reach 70 increases your monthly benefits.”
He also mentioned that many still consider 65 “a crucial age for retirement, and in many respects, it’s more significant than the full retirement age,” because it’s when individuals become eligible for Medicare.
Will Social Security’s full retirement age go up?
Wettstein mentioned that there are no current regulations to raise it, but it might be considered in the future since the system “is somewhat in a deficit (because) less money is received than is paid out.”
If the program’s full retirement age were raised to, say, 68 years, benefit outlays could be reduced because potential Social Security recipients might “claim a full year later,” he explained.

Claiming Social Security: Your Options
Deciding when to retire involves various factors like personal circumstances and financial needs. You can retire whenever you feel ready, but you can only file for Social Security benefits at age 62. If you claim benefits at that point, they will be reduced.
Planning for retirement finances with calculations.
If you manage to wait beyond your full retirement age, your benefits can increase. After your full retirement age, benefits grow by roughly 8% per year until you reach age 70.
Planning Your Retirement
Planning for retirement involves careful consideration beyond just selecting a retirement date. Factors like desired lifestyle, health conditions, and available resources must be evaluated.
Individuals aged 59 ½ can withdraw funds from retirement accounts like 401(k)s and IRAs without incurring a 10% penalty. This option may be vital for those weighing the decision to take Social Security early versus delaying for larger monthly payments.
Consider a comprehensive strategy that includes savings, investments, and any other sources of retirement income. By doing this, you can create a framework that supports both your immediate needs and long-term goals.
The Significance of Educating Yourself
Staying updated on the evolving aspects of Social Security can be challenging yet vital. Knowledge about these changes can influence your retirement decisions positively. Regularly consulting trusted resources or discussing your plans with a financial advisor can provide valuable, tailored insights.
Being well-informed helps you maneuver through the complexities of retirement planning, resulting in a sustainable and advantageous plan for your future.

Factors Influencing Your Decision
When deciding when to claim Social Security, consider the following key factors:
- Health Status: Your health will heavily influence your comfort level in retiring. If you face ongoing health challenges, you might opt for an earlier retirement.
- Financial Needs: Assess your current financial landscape. If you need to cover living expenses, you may have to start claiming benefits sooner, even if it means receiving a lower amount.
- Work Plans: Some people choose to work part-time during retirement. If this option appeals to you, postponing Social Security benefits could maximize your overall monthly income.
- Survivor Benefits: For couples, it’s crucial to understand how claiming strategies impact survivor benefits. Timing one spouse’s claim can significantly affect the other’s financial security.
Seeking Professional Advice
Navigating Social Security and retirement planning can be complex, making the guidance of experts invaluable. Financial advisors can clarify uncertain aspects, assess your situation, and create a personalized plan aligned with your objectives.
Understanding Social Security benefits is critical for individual and family financial stability. Engaging in these discussions will enhance your knowledge and foresight as you approach retirement.
Preparing for a Secure Retirement
As we transition into 2025, understanding how Social Security supports retirement becomes increasingly crucial. Annual adjustments to benefit thresholds and retirement ages require a thoughtful approach to retirement planning.
Know your full retirement age. This understanding allows you to make decisions that optimize your monthly benefits and strengthen your financial health in later life. Regardless of your retirement timeline, being aware of your options will lead to a more secure financial future.
The journey through retirement should not be shrouded in confusion. Equip yourself with the knowledge necessary to make informed decisions about your benefits.
Properly preparing now ensures that your retirement fits both your financial objectives and personal aspirations.
In the ever-evolving landscape of retirement and Social Security benefits, staying informed and planning ahead can lead to exciting opportunities in this new life chapter.