For many Americans, the thought of retirement often revolves around reaching the magical age of 65. However, the full retirement age (FRA) for Social Security benefits has been gradually increasing, and for those born in 1959, it will hit 66 years and 10 months starting in 2025.
While the change may seem small, it has important implications on how and when you can claim your benefits. Understanding how these changes affect your retirement strategy is key to making the most of your Social Security benefits.
What Exactly Changed in Social Security’s Full Retirement Age?
The 1983 Social Security Amendments gradually pushed the FRA from 65 to 67, with a schedule to raise it in two-month increments. Those born in 1959 will see their FRA at 66 years and 10 months starting in 2025.
For individuals born in 1960 or later, the full retirement age will be 67. This change means that those who were expecting to retire at 66 years and 8 months (for the 1958 cohort) will now have to wait an additional two months.
For people who plan to retire earlier than their FRA, early filing at 62 results in a significant reduction of monthly benefits—about 29% for those born in 1959, and up to 30% for those born in 1960 or later.
However, delaying your Social Security claim past the FRA can result in an increase of up to 8% annually, capping at a 32% boost if you wait until age 70.
How to Bridge the Gap Between Early Retirement and Full Benefits
For those who wish to retire before reaching the full retirement age, there are a few strategies to make the transition smoother without relying on a full-time job:
- Phased Retirement: Consider negotiating a three- or four-day workweek. Working part-time, even as little as 15 hours a week, can help cover essential costs like health insurance and groceries without needing to dip into retirement savings.
- Cash Runway: It’s crucial to have a financial cushion to support you between retirement and full Social Security benefits. Financial experts recommend saving 18-24 months of living expenses in a high-yield savings account or money-market account. This can provide stability without the need to sell investments in a downturn.
- Monetize Extra Space: If you have extra space in your home or driveway, consider renting it out. Long-term room rentals can bring in $700–$1,000 a month, and driveway parking in busy urban areas can earn $150–$300.
- Bridge Jobs with Benefits: Some national retailers, such as Costco, Home Depot, and Trader Joe’s, offer part-time jobs that come with medical benefits for employees who work 20-28 hours a week. These jobs can provide you with some income and health insurance while waiting to reach your full retirement age.
Smart Withdrawal and Tax Strategies for Early Retirement
If you plan to retire early or bridge the gap before full Social Security benefits, there are tax-smart strategies to consider:
- Withdraw from Taxable Accounts: To avoid penalties and let retirement accounts like IRAs or 401(k)s continue growing, consider withdrawing from taxable brokerage accounts first.
- Roth IRA Withdrawals: Roth IRA contributions (not earnings) can be withdrawn tax- and penalty-free at any age. This provides a zero-tax option to access funds without affecting your tax situation.
- Keep Modified Adjusted Gross Income Low: Maintaining a low income during early retirement can help you qualify for Affordable Care Act subsidies, saving thousands on health insurance premiums until Medicare eligibility at 65.
- Side Income: If you need extra income, consider side gigs like tutoring online for $30–$50 an hour, pet sitting, or selling handmade crafts. These options allow you to earn money without committing to a full-time job.
Planning for Future Changes in Retirement Age
While the change from 65 to 67 is nearly complete, lawmakers are already debating the possibility of increasing the full retirement age to 68 or even 69 in the future.
While no new laws have passed yet, it’s a good idea to prepare for these potential changes by creating a flexible retirement plan. Having a cash reserve, part-time income, and tax-efficient withdrawal strategies will help buffer any future shifts in the Social Security system.
Retirement planning has never been more complex, and the gradual rise in the full retirement age is just one of the factors that require careful consideration.
Although the increase in retirement age to 67 may seem like a minor change, it highlights the importance of having a plan in place to navigate the shift.
Building a cash reserve, considering part-time work, and using smart tax strategies will allow you to retire when you’re ready, not when Social Security tells you to.
Keep in mind that flexibility is key, especially as lawmakers continue to debate further increases to the retirement age.
FAQs
What is the new full retirement age for Social Security?
Starting in 2025, the full retirement age for Social Security benefits will be 66 years and 10 months for people born in 1959, and 67 for those born in 1960 or later.
Can I still claim Social Security benefits at 62?
Yes, you can still claim Social Security benefits at 62, but you will receive only 70% of your full benefit amount. The longer you wait, the higher the monthly benefit will be.
Why is the retirement age being increased to 67?
The full retirement age is being increased to 67 to address the longer life expectancy of Americans. The change helps maintain the sustainability of the Social Security system.
How can I prepare financially for the new full retirement age?
To prepare for the new full retirement age, experts recommend building a cash buffer to cover 18-24 months of living expenses, considering part-time work, and planning your Social Security claim strategically.
Well interesting
LIFE IS GODS GREATEST GIFT
ENJOY EVERY MOMENT OF IT.
A MERRY HEART IS A GOOD MEDICINE
WHY WORRY WHEN IT DRIETH OUR BONES !
If this government would leave their corrupt hands off what belongs to Americans there wouldn’t be any problems. They need to stop acting like it belongs to them.
Trump….the menace of the world. I can’t wait til someone removes him from office and his terrible excuse as a human being.
This has positively nothing to do with Trump and everything to do with what is needed to keep Social Security solvent as fewer workforce participants are around to contribute to current retirees and near-future retirees. I would rather have Social Security benefits be means-tested. I would also rather have Social Security as an optional default retirement program and give people choices for retirement income. But such changes are political suicide. So our only alternative to ensure solvency is to raise the retirement age.
Received my first check this month after turning 62 in May. Retired military also with disability pay . Better for me to take it now and enjoy myself because life is short and nothing is promised. The wife and I both took it the moment we were eligible. The “big beautiful bill” did not cover us for tax deductions as promised. I feel bad for those that are not prepped for early retirement. My God bless you folks!
I’m in the same boat as you my friend!! I’m a 20+ year Retired Senior Non-Commissioned Officer from Vandenberg Air Force Base with 60% Veterans Affairs Disbility Rating due to Degenerative Disk Disease. I worked for the Department of Labor in the State of California as the sole Disabled Veterans Outreach Program manager for ALL of San Luis Obispo County, Santa Maria, Lompoc, Goleta, Santa Barbara, Ventura & Oxnard until May 2018. I decided to stop working, and start traveling around the world living off my Air Force Retirement and VA Disability. I was Diagnosed with Terminal Cancer in Mid-June 2025. I went to the Social Security Office in Oxnard, CA request Social Security Disability Insurance and/or “plain old” Social Security benefits that I paid into since age 16 in 1985. I was DENIED SSDI & SSI because the Representative told me I hadn’t worked the last 5 years, although the only requirement to be eligible for Social Security benefits was a continuous work history of 10 years…there is no law that says you can’t “retire” early if you have the funds to do so and can request Social Security Disability Insurance if you become “Disabled” and can’t work…in my case, the Cancer has ate my Ribs and Spine to where my Spine is fully compressed and my ribs are breaking on their own (I have Multiple Myeloma Advance stage 2 of ONLY 3 Stages), I’ve lost my ability to stand or walk due to the risk of paralysis. I am shocked my Country DENIED me Social Security because I didn’t work these last five years, even though there was no requirement to do so. I am forced to hire a Social Security Disability Lawyer to fight on my behalf…SAD and PATHETIC of what THIS Current Administration is doing to those that served their country for 20+ years and I was awarded Valor for Heroism and Bravery during Combat Operations in 1996.
I rec’d my ck “early” as I was married to a disabled Vietnam Vet, who died at 73..I miss him terribly but at least I get a lot more retirement $$..Since I was a very young mother, I now have a 60 yr old son who i’m very concerned about.. He thinks he’s going to get his retirement at age somewhere from 63-67..I don’t know who’s telling him this, but i’m not sure they’re right (??)..
Ok my fellow Americans who besides me is tired of paying federal taxes and watching it being spent on none americans and helping fund there wars these other country’s and the wars they have and watching our elders struggle to live after paying there ferderal taxes there whole life and getung nothing from it so so sad that we the people allow it shame on us all for not caring about it but you will care about it when its time to retire and you can’t cuz you can’t afford to, so now you have the old trying to get a job if there lucky enough to find one there taking a job from the younger generation…… COME ON NOW AMERICA WHEN ARE WE GOING TO SAY ENOUGH IS ENOUGH AND STICK UP FOR US THE PEOPLE IT IS STILL WE THE PEOPLE RITE???
Hello to a lot more people dropping dead on their jobs and never enjoying the 50+ yrs they did work to get that deserved last few yrs of enjoying family and a home they finally paid off.
This is becoming Unamiginable- Please !@ tell me WHO and waht job will hire Anyone 60 or older ? Im 60 and have tried to even get a job at Walmart , i get Thank you Ma’am, please Try AGAIN in a few months, and i have 2 college degrees? If they jeep raising the retirment age – my guess is they dont want to pay out, by that time our children are helping us get by, Trump admin. Didnt do me anygood this round.
Social Security should be an option, not requirement. Where’s the money that we’ve paid in go, it’s our family’s who take the loss. That money paid in should be given to its entirety to the families not thrown back to the government. The government did nothing to deserve getting it, the families should be entitled to both the husband’s and wife’s. If the spouse dies the surviving spouse gets the higher amount, but what about the other spouses that was paid in, why does it just disappear back to Social Security?
It sucks… but in reality in the US, you are considered old and washed up at ago 40…Most employers don’t want age 40+ workers!! Trust me, I worked for the US Department of Labor for the State of California and spoke with Employers all the time at Chamber of Commerce monthly luncheons, and held private meetings with them in the San Luis Obispo County, Santa Barbara County Santa Maria/Lompoc, Goleta Santa Barbara Carpinteria, and Ventura County Ventura and Oxnard locations…Employers do NOT want you!! I tried like heck to get my potential employees and job interview, but to no avail. I was heartbroken and felt deflated which eventually affected my mental health and my decision to move on and live out the rest of days on the income I earned. America is NOT the Country I thought it was…the lack of empathy is startling.
Caregiver
Amen to that 👏
keep you working till your dead. i retired early. lost income. for that. guess what. i can still move and get up out of bed i will take the pay cut. because i don’t want to. die before i enjoy a few years of not working for someone else to get rich. while we struggle daily. i talked to my. nabor on. wends day he was working the cattle farm. had been for 40 years he told me. yep. i’m retiring next season moving to florida. finally getting away from the cattle , i said. that’s great. i know it’s a 7 day a week job 4 am. to 9pm. or later milking cows , he says. yep. no. time for yourself. doing this kind of work , on. friday. same week. HE DROPPED DEAD OF A HART ATTACK ON HIS FRONT PORCH . THIS OPENED MY EYES. AND I WAS NOT GOING TO WORK MY ENTIRE LIFE. FOR NOTHING. I FINISHED THE REST OF MY 15 th. year where i was working. and. put in my resignation, don’t care if i starve or am homeless. i’m not working for any one. making them rich. trading my life for thier happiness. forget everything about retirement. they don’t want you to live long enough to collect. YOUR MONEY THEY TOOK FROM YOU ALL THEM YEARS. WHAT A SCAM
As they sit behind their desks, not wearing their bodies out from physical labor and getting their fat pensions. HOW DARE they make these choices for the legally working people of this country.THEY LITERALLY HAVE NO RIGHT TO DECIDE WHEN WE CAN RETIRE AFTER WE HAVE PAID THIS MONEY IN OVER OUR LIFETIMES and our families lifetimes.🤬🤬🤬