The Social Security retirement age is changing: Find out who is affected here

In 2025, the Social Security retirement age is changing, and millions of Americans could be affected.

At this age, seniors can receive the full amount of monthly benefits to which they are entitled. From the age of 62, the benefit can be claimed earlier, although the payments are lower. Meanwhile, the Social Security Administration is expected to run out of money to make full payments by the mid-2030s unless Congress takes action.

In 2025, the full retirement age will be raised for many seniors.

“This is not just a bureaucratic adjustment, but a response to increasing life expectancy and the financial challenges facing Social Security,” said Michael Ryan, financial expert and founder of MichaelRyanMoney.com Newsweek.

Under the rules for next year, those born between 1943 and 1954 will have the full retirement age of 66, but anyone born after that will have to wait a little longer.

For those born in 1955, the full retirement age is 66 and two months, for children born in 1956 it is 66 and four months.

For those born in 1957, the full retirement age will be raised to 66 years and six months, while babies born in 1958 will receive full pensions at 66 years and eight months.

Finally, those born in 1959 can receive full Social Security checks at 66 and 10 months, and those born in 1960 reach full retirement age at 67.

“This does not mean that seniors cannot access their Social Security benefits before age 67, but rather that accessing them before that age results in a smaller payout,” says Alex Beene, a financial literacy lecturer at the University of Tennessee at Martin says Newsweek.

Under the new rules, people born in the second half of 1957 and those born in the first four months of 1958 will reach full retirement age in 2024.

In 2025, people born in the last eight months of 1958 will reach full retirement age, while those born in the first two months of 1959 will reach full retirement age toward the end of the year.

“These changes will most likely not have a dramatic impact on recipients,” Beene said. “Even if the full retirement age is raised, this will happen very gradually by a few months.”

While those who claim Social Security benefits before they reach retirement age will not receive the full amount, those who wait until after they reach retirement age to claim benefits will see their benefit increased each year until age 70.

In 2025, the cost of living adjustment was updated to 2.5 percent, increasing the average monthly payment from $1,927 to $1,976.

Additionally, early retirees can earn up to $23,400 annually before their benefits are reduced, while those who have reached full retirement age will see the limit increase to $62,160.

Additionally, the maximum earnings subject to Social Security tax will increase from $160,200 to $176,100.

Congress continues to debate the merits of raising the full retirement age even further, to 68 to 70, based on the program’s looming funding crisis and longer life expectancy.

“Proponents argue that this strengthens the solvency of the program by encouraging longer workforce participation while reducing lifetime payouts,” Ryan said. “But what about workers in physically demanding jobs or those with shorter life expectancies?”