67 No Longer Full Retirement Age – Social Security Releases New Retirement Guidelines for the U.S.

For years, age 65 has symbolized the beginning of retirement for most Americans. But that traditional benchmark is quietly shifting. Thanks to changes made decades ago, the full retirement age (FRA) for Social Security is now creeping upward. If you were born in 1959, your FRA will be 66 years and 10 months starting in 2025. And if you were born in 1960 or later, your FRA is a full 67. It may not sound like a big change, but this extra wait can have a serious impact on your benefits—and your overall retirement plan.

Timeline

This shift in FRA isn’t new. It started with the Social Security Amendments of 1983, which set the stage for a gradual increase in full retirement age from 65 to 67. The goal? To help preserve the long-term financial health of the Social Security system as Americans live longer.

Here’s how it breaks down by birth year:

Birth Year	Full Retirement Age
1958	66 years, 8 months
1959	66 years, 10 months
1960+	67 years

Retiring early is still an option—benefits can be claimed as early as age 62—but with a permanent reduction. For those born in 1959, that’s about a 29 percent cut in monthly benefits. For those born in 1960 or after, the reduction climbs to 30 percent. Delay retirement, however, and you can earn an 8 percent increase in benefits per year beyond FRA, up to age 70.

Income Gap

Many people dream of retiring before their FRA, but jumping the gun without a solid income strategy could backfire. Here are ways to close the gap if you want out of the workforce sooner rather than later:

Phased Retirement

Try working part-time or reducing your weekly hours. Even working three days a week can keep money coming in while slowing your savings drawdown.

Build a Cash Buffer

It helps to stash away 18 to 24 months of living expenses in a high-yield savings or money market account. This lets you avoid tapping into investments, especially during a market dip.

Monetize Home Assets

Have an extra room or driveway space?

• Rent a room for $700 to $1,000/month
• Lease your driveway for $150 to $300/month in city areas

Part-Time Jobs With Benefits

Some companies offer health insurance to part-time workers. Costco, Trader Joe’s, and others provide medical coverage for those working around 20–28 hours per week.

Withdrawals

If you retire before you’re eligible for Social Security or Medicare, you’ll need to rely on your savings. But how you withdraw funds makes a big difference:

Tap Taxable Accounts First

Start with brokerage accounts to avoid early withdrawal penalties from retirement accounts and give tax-advantaged accounts more time to grow.

Use Roth IRA Contributions

You can withdraw your original Roth IRA contributions (not the earnings) anytime, tax- and penalty-free.

Watch Your MAGI

Keeping your Modified Adjusted Gross Income low can qualify you for health insurance subsidies under the Affordable Care Act—helping you afford coverage until Medicare kicks in at 65.

Side Hustles

You don’t need a full-time job to make ends meet. A few ideas:

• Tutoring for $30–$50 per hour
• Pet sitting and dog walking
• Selling crafts or digital products online

Future

While FRA currently maxes out at 67, some lawmakers have floated proposals to push it even higher—to 68 or 69—as a way to shore up Social Security’s finances. These ideas haven’t become law yet, but they could in the future.

What to do?

• Keep your plan flexible
• Maintain a healthy emergency fund
• Stay informed on policy changes

The bottom line is this: the increase in FRA may seem like a bureaucratic tweak, but it impacts your retirement timeline and income for decades to come. By planning now, you can stay ahead of the changes—and retire on your own schedule.

FAQs