America's full retirement age (FRA) for claiming 100 percent of Social Security rises to 67 in 2025, capping a four-decade phase-in that permanently trims checks for anyone filing earlier and rewards those who delay until 70.
Workers who understand the new timetable and the penalties for jumping the gun can still lock in higher benefits despite warnings that the system's main trust fund could run short by 2033.
Why FRA Hit 67
The two-year age hike was baked into the Social Security Amendments of 1983, signed by President Ronald Reagan to shore up a program now paying nearly 74 million Americans. Beginning next year, every new retiree born in 1960 or later must reach 67 to collect an unreduced benefit. Those born in 1959 reach their FRA -- 66 years, 10 months -- in November.
The Cost Of Claiming Early
You can still file at 62, but doing so slashes the monthly check by up to 30 percent. You get lower benefits if you claim before that retirement age. Every month you claim early, you get a reduction. Wait until 70 and delayed-retirement credits lift payments roughly 8 percent a year, pushing the maximum 2025 benefit above $5,100.
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Medicare Still Turns On At 65
Turning 65 remains pivotal because it opens the Medicare door, a milestone that "is in many ways more important than the full retirement age," says Gal Wettstein of Boston College's Center for Retirement Research tells USA Today. Retirees who claim Social Security early yet exit the workforce before 65 must budget for private coverage until Medicare starts.
Planning Beyond 2025
Delaying even a few months can recoup thousands over a lifetime, advisors note, and online calculators at SSA.gov let users test break-even ages. Policymakers warn time is short: the OASI trust fund is projected to pay full benefits only through 2033, after which incoming taxes would cover 79 percent, making personal savings and 401(k) catch-ups more critical.
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