Key Points from 24/7 Wall St.: Before claiming Social Security in 2025, make sure you know your full retirement age (FRA) based on your birth year. Understanding your FRA is crucial in determining how your benefits will be affected by when you choose to claim. Take this sponsored quiz to assess your retirement readiness.
If you’re planning to claim Social Security this year, it’s essential to be aware of your FRA to avoid negatively impacting your lifelong income. Your FRA is the key number that dictates how much you’ll receive in benefits. Traditionally, retirees could collect their full Social Security benefit at age 65, calculated based on their highest-earning 35 years. However, changes in Social Security laws in 1983 gradually pushed the FRA later, requiring retirees to wait longer for full benefits. While you can claim benefits as early as 62, doing so before reaching your FRA will result in reduced monthly income for life.
To determine your FRA, simply refer to the table correlating birth year to retirement age. Knowing this number will help you understand when you can claim your full benefit. Claiming before or after your FRA directly impacts the amount you receive. Early claims result in decreased payments, with a potential 30% reduction if claimed at the earliest age of eligibility when the FRA is 67. Conversely, delaying benefits beyond your FRA can increase your checks by up to 8% per year until age 70.
By being informed about your FRA, you can make an educated decision on when to start Social Security, assessing how your payments will be affected by the timing of your claim.
It’s important to consider that if you claim benefits before reaching full retirement age, your benefits will be permanently reduced. This reduction won’t be made up for when you reach full retirement age, so it’s crucial to carefully evaluate which claiming age is most advantageous for your individual situation.
