Jun 19, 2025 04:57 AM IST
The Social Security Administration (SSA) has officially increased the Full Retirement Age (FRA) for beneficiaries from 65 to 67 years
The Social Security Administration (SSA) has officially increased the Full Retirement Age (FRA) for beneficiaries from 65 to 67 years. This change will directly impact the time and quantum of benefits retirees receive and has been enacted due to a blend of social and economic factors.
This change is part of a series of policies implemented since 1983 which progressively adjust the FRA according to the beneficiary’s year of birth. For those born after 1960, this bracket has now been raised by two years to 65.
Why has the change been implemented?
The previous benefit structure and age brackets were implemented back in 1935 when an average person was expected to live up to 61 years old. However, due to rapid medical advancement and technological growth, the average life expectancy among the general population has risen. This essential sociological change prompted Congress to collectively raise the age threshold.
Additionally, the SSA has also been facing budget shortages lately with many reports stating that its trust fund is expected to run out within the next decade. As the demographic shifts from a tax-paying younger population to a benefit-ridden older one, the need to limit the amount of benefits rolled out increases even more. Hence, increasing the FRA is a mechanism to help save funds and distribute benefits in more economically sound ways.
How will this impact benefits?
Even though the FRA has now been raised, many people can still opt to start receiving funds as early as the age of 62. However, there is a catch to this. “If you start receiving benefits early, your benefits will be reduced a small percentage for each month before your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase,” reads the official SSA website.
Beneficiaries can use SSA’s online tool (ssa.gov/retirement/ageincrease.html) to determine the estimated amounts they are entitled to receive at different age levels and scenarios.
By Stuti Gupta
