If you’re planning to retire soon, you’ll need to keep an eye on Social Security’s full retirement age (FRA). In 2025, the FRA increases to 66 years and 10 months for people born in 1959. This is part of a slow, phased-in increase set by a law passed back in 1983.
For anyone born in 1960 or later, the full retirement age will be 67 years old, meaning you’ll need to wait longer to get full benefits. While this may not seem like a huge jump, it does impact how much money you’ll get if you claim benefits early.
How Early or Late Retirement Affects Your Benefits
You can start collecting Social Security as early as age 62, but if you do, your monthly check will be permanently reduced—by up to 30%. On the other hand, if you wait past your full retirement age, you get an extra 8% per year in benefits, up until age 70.
That means if your FRA is 67 and you wait until 70, you could increase your monthly Social Security check by 24%. For people with a longer life expectancy or those who don’t have enough saved for retirement, delaying benefits can make a big difference.
Social Security Checks Are Going Up in 2025
Good news—Social Security benefits are increasing in 2025 thanks to the Cost-of-Living Adjustment (COLA). The increase for 2025 is set at 2.5%, which means the average Social Security check will go from $1,927 to $1,976 per month.
Married couples collecting benefits together will also see an increase, with their average monthly payment rising to $3,089. While this helps offset inflation, some retirees were hoping for a bigger boost, especially after the higher COLA adjustments in 2023 and 2024.
How Much Can You Earn While Collecting Social Security?
If you plan to work while collecting Social Security, you should know about the earnings limit. In 2025, if you’re under full retirement age, you can earn up to $23,400 per year ($1,950 per month) before your benefits are reduced.
For every $2 you earn over this limit, $1 will be deducted from your Social Security checks. If you reach full retirement age in 2025, you can earn up to $62,160 before seeing any reductions.
Another big change: More of your income will be taxed for Social Security. The maximum taxable earnings limit is going up from $168,600 to $176,100 in 2025. This means high earners will contribute more in Social Security taxes.
What This Means for Your Retirement Plans
These changes highlight why planning ahead for retirement is more important than ever. Whether you decide to claim benefits early, wait for a bigger check, or work while collecting Social Security, knowing the rules can help you maximize your benefits.
It’s always a good idea to check your Social Security statement regularly and consider speaking with a financial advisor to make sure you’re making the best decision for your future.
