Social Security Administration's annual report or data release

U.S. Social Security Retirement Age Set to Rise to 66 Years and 10 Months in 2025

Dec 14, 2024, 04:54 PM

The full retirement age for Social Security benefits in the United States is set to increase in 2025. Individuals born in 1959 will reach full retirement age at 66 years and 10 months, while those born in 1960 or later will need to wait until they are 67 years old to access their full benefits. This change reflects a gradual increase in retirement age established by a law passed by Congress in 1983, aimed at aligning with the growing expected lifespan. The Social Security Administration recommends applying for benefits up to four months in advance to facilitate the process and avoid setbacks. Additionally, the Cost of Living Adjustment (COLA) for 2025 has been set at 2.5%, which will increase beneficiaries' monthly payments and adjust the income thresholds for Social Security credits and taxable wage limits. Early retirement at age 62 involves a permanent 30% reduction in monthly payments, with reductions of 0.55% per month for the first 36 months and 0.42% per month thereafter.