New rules push the full retirement age to 66 years and 10 months next year, with lawmakers eyeing 69 later this decade.
Thinking of filing for Social Security the minute you turn 65? Hold that thought. In 2025, Americans born in 1959 will have to wait until 66 years and 10 months for full benefits. The step‑up may look minor, yet it can cut lifetime payouts for anyone who files early.
Why the new full retirement age matters for near‑retirees heading into 2025
A two‑month bump means workers who planned to claim at 66 years and 8 months must wait—or swallow a steeper cut. Early filers at 62 born in 1959 will see checks docked about 29 percent; for 1960 births the haircut grows to 30 percent. Could that squeeze your budget?
| Birth year | FRA (months) | Cut at 62 |
|---|---|---|
| 1958 | 66 + 8 | 28 % |
| 1959 | 66 + 10 | 29 % |
| 1960+ | 67 + 0 | 30 % |
These figures come straight from Social Security’s benefit tables.
How filing early slashes monthly Social Security checks for 1959–1960 workers
File before FRA and the penalty sticks for life. Someone due $2,000 at FRA would receive roughly $1,420 if born in 1959 and $1,400 if born in 1960. That’s a haircut few retirees can ignore when Medicare premiums and inflation remain wild cards. Below, strategies to bridge the income gap until you reach the higher FRA, so, what can you do besides crossing days off the calendar?
- Progressive retirement: Shift to a three‑day workweek to keep health coverage.
- Cash buffer: Stash 18–24 months of expenses in a high‑yield account.
- Monetize space: Rent a room long‑term for $700–$1,000 a month.
- Part‑time retail gigs: Chains like Costco or Trader Joe’s offer benefits at 20 hours.
These moves can plug the gap without gutting your 401(k).
Lawmakers weigh raising the full retirement age to 69 between 2026 and 2033
Social Security’s trust fund could dry up by 2034, covering only 81 percent of promised checks. One fix on the table: nudging the FRA to 69. Supporters call it inevitable; critics warn it punishes those in physically demanding jobs. Where do you stand?
Delaying benefits grows more valuable as the FRA climbs. Check your birth‑year table, run the numbers, and consider part‑time income so your retirement dream stays on track.