Full Retirement Age: Retirement in the United States has long been associated with age 65. It’s a cultural benchmark, a financial milestone, and for many, a lifelong goal. But that narrative is shifting. Social Security is evolving, and so is the definition of when Americans can expect to receive full retirement benefits. The full retirement age (FRA) is no longer a fixed number for everyone—it now depends on your birth year, and for millions, it’s moving beyond 67.
This change might feel like a technical adjustment, but its impact is significant. For those planning to retire soon or already mapping out long-term goals, understanding the updated Full Retirement Age guidelines is essential. Let’s break down what’s changing, who is affected, and how to prepare for this new retirement landscape.
Full Retirement Age
The Full Retirement Age is the age when you can claim your full Social Security retirement benefits without penalties. For decades, FRA was 65. However, starting with the Social Security amendments of 1983, the government began phasing in an increase. As of 2025, people born in 1959 will have a FRA of 66 years and 10 months, and those born in 1960 or later will need to wait until age 67.
This change reflects efforts to maintain the financial sustainability of the Social Security program as Americans live longer and healthier lives. And it’s likely not the last update we’ll see.
Overview Table
| Birth Year | Full Retirement Age | Early Claiming Age | Reduction if Claimed at 62 |
| 1958 | 66 years, 8 months | 62 | ~29% |
| 1959 | 66 years, 10 months | 62 | ~29% |
| 1960 or later | 67 years | 62 | ~30% |
What’s Changing in Social Security’s Full Retirement Age?
While the latest change bumps the FRA for those born in 1959 to 66 years and 10 months, this continues the long-term trend of pushing retirement later. For those born in 1960 or after, 67 is the new standard. Retiring earlier than your FRA means your monthly benefits will be permanently reduced. For example, retiring at 62 with an FRA of 67 results in about a 30% cut in benefits.
On the flip side, delaying retirement past your FRA increases your monthly check by about 8% per year up to age 70. This strategy can significantly boost your total lifetime benefits.
How to Bridge the Gap Before Reaching Full Benefits
Not everyone can or wants to wait until 67 or 70 to retire. If you aim to step back earlier, it’s important to bridge the financial gap smartly. Here are some practical approaches:
Phased Retirement
Rather than going from full-time to full-stop, consider cutting your work hours gradually. Many employers offer phased retirement options that allow you to stay employed part-time while transitioning into full retirement.
Build a Cash Runway
Experts recommend saving 18 to 24 months’ worth of living expenses in a high-interest savings or money market account. This cushion allows you to delay Social Security and gives your investments more time to grow.
Monetize Unused Assets
Do you have extra space in your home? Renting a room or even your driveway in urban areas can generate a few hundred dollars each month. It’s passive income that requires little extra effort.
Take on Bridge Jobs
Retailers like Costco or pharmacies often offer part-time jobs with health benefits. Working 20–25 hours a week can provide both income and healthcare coverage until you’re eligible for Medicare at 65.
Tax-Efficient Withdrawal Strategies
Relying on your personal savings early in retirement requires strategic withdrawals to avoid high taxes. Here’s how to approach it smartly:
Tap Taxable Accounts First
Withdraw from regular investment accounts before dipping into your 401(k) or IRA. This helps avoid early withdrawal penalties and allows tax-advantaged accounts to grow.
Use Roth IRA Contributions
You can withdraw your Roth contributions (but not earnings) at any time, tax-free. This can serve as a useful income source in early retirement.
Keep MAGI Low
If you retire before 65, a low Modified Adjusted Gross Income (MAGI) can qualify you for Affordable Care Act subsidies—reducing health insurance costs by thousands per year.
Explore Part-Time Income
Freelancing, tutoring, or even selling crafts online can help you stay financially flexible while delaying Social Security.
Planning for Possible Future Changes
While 67 is currently the cap for full retirement, there are ongoing discussions in Washington about raising it even further—possibly to 68 or 69. These changes would aim to ensure the solvency of Social Security over the next several decades.
Staying informed is key. Any future increases would likely affect those currently in their 30s and 40s, so long-term retirement strategies must remain adaptable.
How to Prepare
Whether your FRA is 66, 67, or even later in the future, preparation is everything. Here’s what to do now:
- Track your benefits: Use the Social Security website to see your estimated benefits based on different retirement ages.
- Boost your savings: Contribute as much as possible to your 401(k), IRA, or Roth IRA.
- Diversify your income: Don’t rely solely on Social Security. Explore investments, side income, and other revenue streams.
- Get advice: A certified financial planner can help craft a personalized strategy, especially if you’re unsure when to claim benefits.
Final Thoughts
The gradual increase in the Full Retirement Age is a reflection of changing demographics and economic pressures. It’s not a dramatic shift, but it’s one that will alter the retirement timelines for millions of Americans.
The key takeaway? Don’t wait for a government deadline to define your future. Whether you aim to retire early, on time, or later, a flexible, well-informed financial plan will let you do it confidently.
Retirement isn’t about hitting a magic number—it’s about financial freedom, and that begins with understanding how new FRA guidelines affect you. Make adjustments now, stay educated, and be proactive in your planning.
FAQs
1. What is the new full retirement age for those born in 1959?
It’s 66 years and 10 months.
2. Can I still retire at 62?
Yes, but expect a 29–30% reduction in your monthly Social Security benefits if you claim early.
3. Is it worth delaying Social Security past 67?
Yes, delaying until age 70 increases your monthly benefit by about 8% per year.
4. Will the full retirement age rise beyond 67?
Possibly. While no changes have been confirmed, future legislation may increase the FRA to 68 or higher.
5. Do private pensions follow the same rules as Social Security?
No. Private pensions have their own terms and may offer full benefits earlier or later than Social Security.
Take control of your retirement journey today. Review your Social Security status, revise your financial goals, and talk to a professional if needed. Whether you retire at 62, 67, or 70—make sure it’s your choice, backed by a solid plan.
