Goodbye to Retirement at 67 – the new age for collecting Social Security changes everything in the United States

Published On: September 30, 2025

For decades, Americans grew up thinking 65 was the magic retirement age—the point when Social Security would kick in fully. But that milestone has been shifting. Thanks to a law passed back in 1983, the full retirement age (FRA) has been creeping upward, and for those born in 1959, the change lands in 2025: their FRA will be 66 years and 10 months.

It may sound like a tiny adjustment—just two months longer than the 1958 cohort—but the ripple effects on benefits, taxes, and long-term planning are anything but minor.

The Gradual Climb to 67

The 1983 Social Security Amendments set a slow-moving schedule, raising FRA from 65 to 67 in two-month increments depending on birth year. For anyone born in 1960 or later, the FRA is locked at 67.

Birth Year	Full Retirement Age (FRA)
1958	66 years, 8 months
1959	66 years, 10 months
1960 or later	67 years

If you’re in the 1959 cohort and planning to file in 2025, expect to wait almost 67 years old for “full” benefits. Retire earlier than that, and your monthly check shrinks. Delay filing, and the reverse is true.

What Early or Late Filing Means for Benefits

Here’s where timing makes all the difference:

Early Filing (age 62): For those born in 1959, benefits are reduced by roughly 29%. For 1960 or later, the cut is a flat 30%.
On Time (FRA): Filing at 66 years and 10 months gives you your full benefit.
Delayed Filing (up to age 70): Each year you wait beyond FRA adds 8% to your monthly payout—capping at a 32% boost if you hold out until 70.

That means someone with a $2,000 monthly benefit at FRA could see just $1,420 if they file early, or nearly $2,640 if they wait until 70.

Bridging the Gap Before FRA

Plenty of people want to retire before their Social Security hits full stride. Here are strategies financial planners recommend:

Phased retirement: Cut back to three or four days a week. Even 15 hours of work can help cover basics without draining savings.
Cash runway: Build a cushion—ideally 18–24 months of living expenses—in a high-yield savings or money market account. This helps you avoid selling investments in a down market.
Rent out assets: Spare bedroom? Driveway? These can bring in $700–$1,000 a month for housing or $150–$300 for parking in urban areas.
Bridge jobs with benefits: National retailers like Costco, Trader Joe’s, and Home Depot offer part-time schedules with health insurance—a huge perk for those under Medicare age.

Smart Tax Moves for Early Retirement

Managing withdrawals wisely can stretch savings and minimize taxes:

Tap taxable accounts first: Let IRAs and 401(k)s grow longer by drawing from brokerage accounts.
Use Roth IRA contributions: You can pull out contributions (not earnings) anytime, tax- and penalty-free.
Keep MAGI low: By managing taxable income, you might qualify for Affordable Care Act subsidies, keeping health insurance costs down until Medicare at 65.
Side income streams: Online tutoring ($30–$50/hr), pet sitting, or selling crafts can provide extra income without full-time commitments.

Looking Ahead: Could FRA Rise Again?

The FRA rise to 67 is almost complete, but lawmakers are debating whether to push it even higher—to 68 or 69. Why? Because Social Security’s financial picture is strained. The latest Social Security Trustees Report projects the trust funds could run out by 2034, forcing an automatic benefit cut to about 81% of scheduled payments unless Congress acts.

Potential fixes on the table include: