Social Security is a complex program that undergoes periodic revisions to keep up with current trends. These changes are critical for beneficiaries, and understanding them can make a significant difference in their financial planning year after year, so being informed is crucial.
The annual cost-of-living adjustments (COLA) protect beneficiaries’ purchasing power, but there are other changes that affect workers and retirees that are not as obvious or as discussed as the 2.5% COLA that will apply to benefits in 2025.
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Social Security’s full retirement age (FRA) is increasing in 2025
The earliest retirement age is 62, although persons who retire at this age will not get their main insurance amount (PIA), also known as the baseline benefit. A worker’s full retirement age, based on their birth year, determines their eligibility for the PIA.
| Birth Year | Full Retirement Age (FRA) |
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
For many years, a worker’s retirement age has fluctuated. In 1935, the full retirement age was 64. However, during the 1980s Social Security crisis, the retirement age was raised to 67 years old as a precautionary measure. This process took time and was executed gradually, resulting in anyone born after 1960 being eligible to retire at age 67 with full benefits.
Early retirement at age 62 results in a 30% reduction in benefits compared to full retirement age (PIA). To receive maximum benefits, a worker must pay payroll taxes to the Social Security Administration for 35 years and retire at full retirement age.Only this will ensure that they receive 100% of their PIA.
Some workers can receive a higher amount than the PIA if they retire at age 70, which is the maximum age for benefits. This amount increases by 8% per year after full retirement age, for a total of 24% for those who retire at age 67.
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Social Security’s maximum retired-worker benefit is increasing in 2025
Social security benefits are capped. The program’s scalability limits the number of benefits available to former employees. This cap increases annually with the COLA, ensuring that benefits keep up with inflation.
To receive the full Social Security payment, a person must have worked for 35 years with the maximum taxable income or higher and wait until age 70 to claim. Most workers struggle to achieve these standards, therefore it’s vital to compare maximum benefits at various claiming ages to see if waiting as long as feasible is worthwhile. Since the conditions are so difficult to accomplish, just about 7% of workers meet the threshold in any given year.
| Claim Age | Maximum Social Security Benefit |
| 62 | $2,831 |
| 65 | $3,374 |
| 66 | $3,795 |
| 67 | $4,043 |
| 70 | $5,108 |
Also See:- The list of Social Security changes for 2025 is now official – What retirees should keep in mind