Retirement at 67: Gone are the days when retirement at 65 meant a clear transition into life’s next chapter. Due to gradual adjustments in Social Security law, the full retirement age (FRA) has shifted. For those born in 1959, the FRA moves to 66 years and 10 months in 2025. If you were born in 1960 or later, your FRA now settles at 67. While it may seem like a minor two-month delay, this change—a shift toward Retirement at 67—has major effects on monthly income, healthcare planning, and lifestyle decisions.
Retirement at 67
Retirement at 67 is no longer just a distant goal—it’s the new standard for millions of Americans due to shifting Social Security rules. For those born in 1960 or later, this marks the new full retirement age (FRA), replacing the traditional age of 65. While it’s still possible to claim benefits at 62, doing so will reduce your monthly payments by up to 30%. On the other hand, delaying your claim until age 70 can increase your benefits by as much as 32%. This evolving timeline means retirement planning must now include flexible strategies, financial buffers, and alternative income sources to ensure long-term security and peace of mind.
Overview Table
| Birth Year | Full Retirement Age | Early Claim Age | Early Benefit Reduction | Delay Increase | Max Increase at 70 |
| 1959 | 66y 10m | 62 | ~29% | 8% per year | ~32% |
| 1960+ | 67 years | 62 | ~30% | 8% per year | ~32% |
What Exactly Changed in Social Security’s Full Retirement Age?
Legislation from 1983 scheduled the FRA shift in two-month increments. In 2025, those born in 1959 see their FRA rise to 66 years and 10 months. For anyone born in 1960 or later, FRA is now set at 67. While seemingly small, this adjustment nudges retirement down the road—forcing millions to reconsider financial timelines and retirement readiness.
Early Benefits and Delayed Filing
Social Security can be claimed as early as 62, but at a steep cost—around a 29–30% benefit cut. On the flip side, delaying your claim past FRA increases benefits by roughly 8% per year, capping at age 70 with a maximum 32% gain. Accurately timing your claim can mean tens of thousands of dollars in additional retirement income.
How to Bridge the Gap Between Early Retirement and Full Benefits
For those eager to leave the workforce before FRA arrives, consider these strategies:
- Phased Retirement: Negotiate part-time hours to help with expenses while transitioning into retirement.
- Build a Cash Runway: Save 18–24 months’ living expenses in accessible accounts to buffer early years.
- Rent Space at Home: Earn $700–$1,000 per month by renting a room or driveway.
- Bridge Jobs with Benefits: Retailers like Costco or Home Depot offer part-time roles with medical perks.
These strategies keep you afloat financially while protecting savings and future benefits.
Smart Withdrawal and Tax Strategies for Early Retirement
Navigating taxes and withdrawals is critical before and around FRA. Consider these tactics:
- Tap Taxable Accounts First: Preserve retirement accounts by withdrawing from brokerage accounts first.
- Use Roth IRA Contributions: Withdraw contributions without tax or penalty at any age.
- Keep Income Below ACA Thresholds: Qualify for subsidies until Medicare eligibility at 65.
- Take Side Gig Work: Part-time offerings—like tutoring, pet sitting, or crafts—can generate flexible additional income.
Planning for Future Changes in Retirement Age
While retirement at 67 is the current standard, lawmakers are already discussing increases to 68 or 69. Though no changes are finalized, adopting a flexible plan—one that includes savings, part-time income, and tax-smart withdrawal paths—is wise. Preparing now avoids scrambling later if full retirement age shifts again.
Final Thoughts
Retirement at 67 signals a fundamental shift in how Americans must plan for their later years. The era of early Social Security collection is ending, and the prize for waiting is higher monthly income. To thrive in this new environment, build financial buffers, explore part-time or bridge employment, and hone your benefits strategy. By taking control of your retirement timeline today, you can enjoy both greater financial freedom and peace of mind.
Call to Action
Are you ready to rethink your retirement roadmap? First, check your full retirement age based on birth year. Then model the outcomes of early versus delayed Social Security claiming. Consider part-time work, savings buffers, and tax-smart withdrawal strategies. Planning now ensures that you retain control, no matter where retirement takes you. Start your personalized retirement review today!
FAQs
Q1. What is the new full retirement age for Social Security?
For those born in 1959, it’s 66 years and 10 months. For those born in 1960 or later, it is now 67.
Q2. Can I still claim benefits at 62?
Yes, but you’ll receive a reduced monthly benefit—about 70% of your full entitlement.
Q3. Why was the retirement age increased?
The change helps sustain the Social Security system as Americans are living longer.
Q4. Is it worth delaying Social Security until 70?
Yes, delaying can increase your monthly benefit by up to 32% over your full retirement age amount.
Q5. What if lawmakers raise the retirement age again?
Be flexible. Build a financial buffer, explore part-time income, and adjust your retirement timeline accordingly.
