Will You Take Social Security in 2025? Here's Why Your Full Retirement Age Matters?

Social Security is a vital part of retirement planning. Many people think retirement starts at 65, but that’s not always the case.

You can start claiming Social Security benefits as early as 62, though the checks will be smaller. To get the maximum benefit, you need to wait until your “full retirement age.” For those born in 1960 or later, this age is 67.

This change didn’t happen overnight. Back in 1983, Congress decided to slowly raise the full retirement age from 65 to 67. Now, anyone retiring soon should pay attention to this, as it affects how much money you’ll receive each month.

When Can You Start Social Security?

You can claim Social Security starting at 62, but you’ll get a reduced amount. For every month you claim early, your monthly benefit shrinks a bit.

Waiting until your full retirement age means you’ll get the full amount. If you wait even longer, your benefits increase by about 8% per year until you turn 70. After 70, there’s no further increase, so it’s usually best to start by then.

For example, someone retiring at 62 in 2025 might get a maximum monthly benefit of $2,710. But if they wait until 67, this increases to $3,822. By waiting until 70, it could reach $4,873.

Cost-of-Living Adjustment (COLA) in 2025

To keep up with inflation, Social Security adds a cost-of-living adjustment (COLA) every year. Starting January 2025, benefits will go up by 2.5%.

This means the average recipient will see an increase of about $50 per month, raising the average monthly benefit to $1,976. Retired couples will get a $75 increase, with their average monthly benefit rising to $3,089.

This adjustment helps recipients keep up with rising costs, but it’s still essential to plan your finances carefully. Even small increases in benefits can make a difference in managing daily expenses during retirement.

Why Does Full Retirement Age Matter?

Your full retirement age is key to maximizing Social Security benefits. Your monthly payments are permanently reduced if you claim benefits before this age. If you wait longer, your benefits grow. This decision depends on your health, work status, and financial needs.

For instance, if you claim benefits at 62, you’ll face a significant reduction compared to waiting until 67.

However, if you’re in good health and can wait until 70, you’ll see the highest possible monthly payment. Delaying benefits can be smart for those who want to ensure financial security later in life.

Many people still see 65 as an important age because it’s when you can enroll in Medicare. But when it comes to Social Security, the critical ages are 62 and 70, as they mark the earliest and latest you can start benefits.

Will the Full Retirement Age Go Up?

Currently, there are no plans to increase the full retirement age beyond 67. However, some experts think it might happen in the future to help balance Social Security’s finances.

Raising the age would delay when people can claim full benefits, potentially reducing the program’s payouts.

This could mean future retirees might have to wait longer to claim their maximum benefits. While this is only speculation for now, it highlights the importance of staying informed about changes to Social Security rules.

Final Thoughts

Deciding when to claim Social Security is a personal choice. You need to consider your health, work situation, and long-term financial goals. Remember, once you choose to start benefits, that amount stays with you for life. Delaying until your full retirement age—or even longer—could mean a more comfortable retirement.

Planning ahead is key. Take time to research your options and understand how different claiming ages affect your benefits. With careful planning, you can make the most of your Social Security payments and enjoy a financially secure retirement.