- The deadline for filing your 2025 return is approaching: mark your calendar if you are a US citizen living abroad
- Stimulus payment of $725 arrives on Sunday, June 15, 2025: Are you on the list?
The changes in the Social Security retirement system are not sudden, but are part of a gradual plan initiated in 1983 to ensure the financial sustainability of the trust fund.
This final transition represents the last step in a reform designed to adapt to longer life expectancy and the new demographic and economic conditions facing the United States. It is therefore crucial for those planning to retire soon to understand the changes in Full Retirement Age (FRA).
People born in 1959 will reach their FRA at 66 years and 10 months, while those born in 1960 or later will have to wait until age 67 to receive full benefits. This change directly impacts the amount of benefits they will receive and the optimal time to apply for them.
The economic impact of the new retirement age
The increase in the FRA responds to structural needs of the system, as Americans are living longer, so retirees are collecting benefits for more years than before, and without these adjustments, the Social Security system would face severe financial pressure that would compromise future payments.
For those nearing retirement, it is crucial to that those born in 1960 or later will have to wait until age 67 to receive full benefits, as claiming benefits before reaching FRA will result in a permanent reduction in monthly payments.
The figures show the real economic impact of these decisions, as if benefits are claimed at age 62 (the earliest possible age), the monthly payment will be reduced by around 30% for life.
Strategies to Maximize Social Security Benefits
Deciding when to claim Social Security benefits depends on personal and financial factors. If you are in good health and have a stable financial situation, it is best not to anticipate claiming benefits. While in a case with a shorter life expectancy, it may be advisable to anticipate the collection of monthly payments.
It is also advisable to regularly review the Social Security statement to track income and estimated benefits. Tools such as the SSA Retirement Estimator can be used to help get an idea of how much would be received at different ages.