Many headlines suggest “retirement at 67 is ending.”
That’s misleading. Under current law, the Full Retirement Age (FRA) remains 67 for people born in 1960 or later, and there’s no new law that changes that age in 2025.
You can still claim as early as 62 (with reduced benefits) or delay up to 70 (for larger checks).
What is new? A handful of updates that affect how much you’ll receive and how your work and taxes interact with benefits. Below is a clear, up-to-date guide so you can plan with confidence.
The big picture: What changed vs. what didn’t
- FRA stays at 67. Congress has not passed any law to change the full retirement age in 2025. Some policymakers have floated proposals to raise FRA to 69 in future years, but nothing has been enacted.
- 2025 COLA: Benefits rose 2.5% for 2025.
- Earnings test limits increased: If you work while collecting before FRA, the annual limit is $23,400 in 2025; in the year you reach FRA, you can earn up to $62,160 before withholdings apply.
- Payroll/tax thresholds moved: The maximum taxable earnings for Social Security payroll tax rose to $176,100 in 2025.
- WEP/GPO repealed: The Social Security Fairness Act (signed Jan. 5, 2025) repealed WEP and GPO, increasing benefits for some workers with non-covered pensions (e.g., certain state/local employees). This does not change claiming ages but can boost affected retirees’ checks.
- Long-term outlook: Without reforms, the OASI trust fund is projected to be depleted in 2034, after which the system could pay only a portion of scheduled benefits unless Congress acts.
2025 rules at a glance
What the “raise the retirement age” headlines mean
You may see articles about raising the retirement age to 69.
These are policy proposals, not current law. Analysts also note that raising FRA is essentially a benefit cut because it reduces the percentage of your full benefit at any given claiming age. Until Congress passes a bill and it’s signed into law, your FRA remains 67.
How to optimize your claim in 2025
- Run the math around your FRA. Claiming at 62 can reduce your monthly benefit by up to about 30% versus waiting until 67; delaying toward 70 increases payments via delayed retirement credits.
- Mind the earnings test. If you plan to work before FRA, estimate your wages against the $23,400 (or $62,160 in the year you reach FRA) thresholds to avoid surprises. Withheld benefits aren’t “lost”—your benefit is recalculated at FRA.
- Check if WEP/GPO repeal helps you. If you have a non-covered pension, the 2025 repeal could raise your Social Security—review your records and request an updated estimate.
- Plan for the long term. The 2034 depletion doesn’t mean zero benefits, but it’s a reminder to diversify income sources and stay alert to legislative changes.
Despite the noise, retirement at 67 is not ending.
The rules of the road in 2025 are largely familiar—FRA still 67, earliest claim 62, max credits by 70—but the year brings meaningful tweaks: a 2.5% COLA, higher earnings test limits, a higher payroll tax cap, and a repeal of WEP/GPO that boosts checks for some public-sector retirees.
Keep an eye on proposals to raise the FRA in the future, but base your claiming decision on today’s law, your health, work plans, and lifetime income needs.
FAQs
No. FRA remains 67 for those born in 1960 or later. There’s no new law changing that in 2025.