Starting in 2025, Americans born in 1960

will reach their full retirement age at 67, marking the end of a decades-long phase-in period. Here’s what you need to know ¹:

Full Retirement Age and Benefits

– Full Retirement Age (FRA): For those born in 1960, the FRA is 67 years old. This means you’ll be eligible for full Social Security benefits without any reductions.

– Early Retirement: You can still claim benefits as early as 62, but be aware that this will result in a permanent reduction of about 30% in your monthly benefits.

– Delayed Retirement: If you delay claiming benefits past your FRA, your monthly payments will increase by 8% each year until you reach 70. For those with an FRA of 67, delaying retirement to 70 results in a 24% increase.

Key Considerations

– Maximum Benefits: In 2025, the maximum benefit for someone claiming benefits at age 70 is $5,108 per month.

– Cost-of-Living Adjustments (COLA): A 2.5% COLA change has been applied to benefits in 2025, resulting in an average monthly benefit increase of $49.

– Financial Planning Understanding the FRA and benefits can help you plan ahead for retirement and make informed decisions about when to claim your benefits ².