Wed Dec 25 23:10:00 UTC 2024: **Social Security Full Retirement Age to Increase in 2025**

**Washington, D.C. – December 20, 2024** – The full retirement age (FRA) for Social Security benefits will increase again in 2025, impacting individuals born in 1959. Starting November 2025, those born in 1959 will need to reach 66 years and 10 months old to receive their full benefits, a two-month increase from the previous year. This is part of a gradual increase implemented since 1983 to account for rising life expectancies.

While individuals can claim benefits as early as age 62, doing so results in a significantly reduced payout – approximately 30% less than the full benefit. Conversely, delaying benefits until age 70 increases them by about 25%. However, only a small percentage of Americans currently wait until 70 to claim maximum benefits.

The upcoming change highlights a growing concern about retirement preparedness, particularly for younger baby boomers (born 1959-1965) and Generation X. Studies show many in these groups lack sufficient savings, with a significant portion relying heavily on Social Security, which is intended to replace only around 40% of pre-retirement income. The average Gen X household has around $150,000 in retirement savings, far short of the estimated $1.5 million needed for comfortable retirement.

The 2025 increase is the penultimate age change, with the final increase to age 67 for those born in 1960 or later. In addition, Social Security benefits will receive a 2.5% cost-of-living adjustment (COLA) in 2025 to offset inflation.

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