The Social Security Administration (SSA) has officially announced a major update that will affect millions of Americans: beginning August 2025, the Full Retirement Age (FRA) will gradually increase for those born in 1962 or later.
This change reflects a long-anticipated move to keep the Social Security program financially sustainable as the nation’s demographics evolve.
With Americans living longer and drawing benefits for more years, the SSA is taking steps to protect the future of the system.
Here’s a breakdown of everything you need to know, including the new age thresholds, how it affects your monthly check, and what actions you should take next.
What Is the Full Retirement Age (FRA)?
The Full Retirement Age is the age at which individuals can begin receiving their full Social Security benefits without any reduction. Prior to August 2025, the FRA was 67 for people born in 1960 or later.
What’s Changing in August 2025?
Starting August 2025, the FRA will increase by two months per birth year for individuals born after 1962. The new full retirement age will cap at 68 for those born in 1968 or later.
Updated Full Retirement Age Chart
| Birth Year | Current FRA | New FRA (Effective August 2025) |
|---|---|---|
| 1960–1961 | 67 | 67 |
| 1962 | 67 | 67 and 2 months |
| 1963 | 67 | 67 and 4 months |
| 1964 | 67 | 67 and 6 months |
| 1965 | 67 | 67 and 8 months |
| 1966 | 67 | 67 and 10 months |
| 1967 | 67 | 68 |
| 1968 & After | 67 | 68 |
This shift does not impact anyone who has already reached their full retirement age or started receiving benefits before August 2025.
How the New FRA Impacts Your Monthly Benefits
If you claim Social Security before your new FRA, your monthly benefit will be reduced permanently. The further you are from your FRA when you claim, the bigger the reduction.
For example, if your FRA changes from 67 to 68, and you claim benefits at 62, your reduction percentage increases—meaning you’ll receive a smaller monthly check for life.
Delaying benefits until the new FRA or beyond will allow you to avoid these reductions and possibly receive delayed retirement credits, increasing your monthly income.
Why the Full Retirement Age Is Increasing Now
This update is driven by the need to:
- Extend the solvency of the Social Security trust funds
- Adjust for increased life expectancy
- Offset the impact of a shrinking workforce
With fewer workers contributing and more retirees drawing benefits, this adjustment is seen as a fiscally responsible alternative to cutting benefits.
Critics argue the change may disproportionately impact people in physically demanding jobs who may not be able to work into their late 60s, while supporters see it as a necessary evolution of the program.
What You Should Do Next
If you were born in 1962 or later, you should begin adjusting your retirement strategy now:
- Use the SSA benefit calculator with the new FRA to estimate monthly payments
- Re-evaluate your savings plan, including retirement accounts and pensions
- Delay claiming benefits, if possible, to maximize your monthly income
- Consider part-time or phased retirement options if you’re unable to wait until your new FRA
- Consult with a financial advisor to update your retirement timeline and income strategy
The Social Security FRA increase effective August 2025 marks a pivotal change in how Americans will approach retirement.
With the full retirement age rising gradually from 67 to 68, now is the time to reassess your financial plans and ensure you’re prepared.
By understanding the updated rules and adjusting your retirement approach accordingly, you can still maximize your benefits and secure a stable income for the years ahead.
FAQs
What is the new full retirement age starting August 2025?
The FRA will increase by two months each year after 1962, reaching 68 for those born in 1967 or later.
Who is affected by the new Social Security retirement age?
Anyone born in 1962 or after who has not reached their full retirement age by August 2025.
How will this change affect my monthly benefit?
Claiming early under the new FRA will result in a larger permanent reduction. Waiting longer helps preserve your full monthly benefit.