Social security retirement age increases to 67 in 2025: Americans born in 1960 need to know about full profit

For many Americans close to retirement, there is a new number to remember, which is 67. Starting in 2025, full retirement age (FRA) for social security increases to 67 for those born in 1960, the report of newsweek. It marks the end of a decades–the end that affects how millions of people can claim their benefits.Change is not suddenly. This is the result of the amendments made in the Social Security Act in 1983, which aims to strengthen the finance of the program and accounting for long -term people. But this is only now, as more old Americans reach 65, that change is finally being felt.Practically, anyone born in 1960 will be 65 years in 2025, but they will not be eligible for full retirement benefits until the age of 67. It is the latest milestone in a two -year growth from the age of retirement of 65 years.Early vs full profitIt is still possible to claim social security before reaching the whole age. Benefits can begin as 62. However, early retired people face permanent shortage. According to the Social Security Administration, at the age of 67, a person entitled to $ 1,000 per month will get only $ 700 if they began from 62.On the other hand, the FRA can promote monthly payment by waiting beyond the FRA. If a person delays up to the age of 70, they can increase their profit to $ 1,240, which is an increase of 24% for three additional years.Who can get full profit in 2025?Only people born before 1960 will reach their FRA and become eligible for full profit in 2025. Others who have turned 65 that year will have to wait up to 67 in 2027. The age of accurate retirement depends on the birth year:

Now why does shift mattersThis change comes at a time when about 4 million Americans have turned 65 years in 2025. It is part of experts that experts say “Silver Tsunami”, a surname for a large number of older adults is now reaching the age of retirement. As more people retire, social security system faces more financial pressure to maintain with payment.“This is not just a bureaucracy adjustment, but a bureaucracy adjustment, but a reaction to financial challenges faced by the expectations of life and social security,” Michael Ryan, Finance Expert and founder of Michaelian.com told Newsweek.Solvency concertAccording to a 2024 report by the Social Security Board of Trusts, the trust fund of Social Security for retirement benefits is estimated to be low by 2033. If no changes are made, the system can pay only 77% prescribed benefits after that date.MPs are divided. Republican has supported further increasing the age of retirement, in which the Republican Studies Committee in 2024 has “made a minor adjustment to the retirement age for future retired people to increase life expectancy.”Meanwhile, Democrats are insisting on a separate solution. Senator Sheldon Whitehouse and Representative Brendon Boyle re -introduced the Social Security and Medicare Fair Share Act. This will implement payroll taxes to earn above $ 400,000, a range currently exempted under $ 168,600 tax cap.Boyle said in a press release, “This bill will protect social security and medicare for generations to pay the wealthiest Americans.