Big changes are coming to Social Security, and they could impact your retirement plans. Will you still retire when you expect, or will these updates push your timeline?

Here’s what you need to know to stay ahead.

Understanding the Full Retirement Age (FRA) shift​

The concept of “full retirement age” (FRA) is pivotal in determining how much you'll receive from Social Security.

The FRA is the age at which you can claim your full Social Security benefits, and it's inching upwards.

For example, those born in 1957 reached their full retirement age (FRA) at 66 years and 6 months, beginning in 2023.

However, those born in 1958 will need to wait until they are 66 years and 8 months old to qualify for full benefits, starting in September 2024.

If you were born in 1959, brace yourself for a change: starting in November 2025, your FRA will be 66 years and 10 months.

This is part of a gradual increase that has been in motion since Congress restructured the program back in 1983, acknowledging our longer life expectancies.

The implications of claiming early or delaying benefits​

While you can start claiming Social Security as early as age 62, doing so comes with a catch: your benefits will be permanently reduced.

For example, if you claim at 62, you could receive about 30% less than your full benefit.

Despite this reduction, many opt to claim early due to unexpected early retirement or the appeal of guaranteed income over a longer period.

On the flip side, if you can afford to wait, delaying your claim can significantly increase your benefits.

By holding off until you're 70, you could boost your benefits by approximately 25% above the full benefit amount.

However, this strategy is not as common, with only about 4% of Americans waiting until 70 to claim their maximum benefit.

The last of the age increases​

The FRA increase for those born in 1959 is the second to last scheduled change.

The final jump will affect those born in 1960 or later, who will have an FRA of 67.

This will predominantly impact the youngest baby boomers and Generation Xers, many of whom are not as prepared for retirement as they might hope.

Recent studies have painted a concerning picture of retirement readiness among younger boomers and Gen Xers.

A significant portion of these individuals will rely heavily on Social Security, despite the program being designed to replace only about 40% of pre-retirement income.

With the average retirement savings for Gen X households hovering around $150,000—well below the estimated amount needed for a comfortable retirement—understanding how to maximize Social Security benefits is more crucial than ever.

Strategies for maximizing your Social Security benefits​

1. Know Your Numbers: Use the Social Security Administration's calculators to estimate your benefits at different claiming ages.

2. Consider Your Health and Longevity: If you're in good health and have a family history of longevity, delaying benefits could pay off.

3. Evaluate Your Financial Needs: If you need income earlier, claiming at 62 might make sense, but be aware of the long-term trade-offs.

4. Coordinate with Your Spouse: If you're married, consider how your claiming strategies can maximize joint benefits.

5. Consider Working Longer, If Possible: Working additional years can boost your benefits, particularly if they replace lower-earning years in your work history.

As we navigate the ever-changing landscape of retirement planning, staying informed about Social Security changes is essential.

The upcoming FRA increase in 2025 is a reminder to review your retirement strategy and make adjustments as needed.

Whether you choose to claim early, delay benefits, or find a middle ground, the goal is to ensure a secure and comfortable retirement.
Have you started planning for the FRA changes? What strategies are you considering to maximize your benefits? Share your thoughts and tips in the comments below.