Some big changes are coming to Social Security next year. Indeed, it’s just been confirmed that the full retirement age is increasing.

The full retirement age was 65 for many years. In 1983, however, this was amended when Congress passed a law that would gradually increase the full retirement age as the average life expectancy continues to grow.

The current age for a person to claim all of their retirement benefits based on lifetime earnings is 66. Come 2025, however, that will be changing.

From The Hill:
Among the changes Social Security recipients will see in 2025 is a higher full retirement age. The number marks the age at which workers become eligible to claim 100 percent of their retirement benefit based on lifetime earnings.

The full, or “normal” retirement age, has been creeping up steadily in recent years by two months for each subsequent birth year.

If you were born in 1958, for instance, you would reach the full retirement age at 66 years and 8 months, but if you were born in the following year that retirement age climbs to 66 years and 10 months. Recipients born May 2, 1958 through Feb. 28, 1959 will all reach full retirement age in 2025, AARP points out. For those born in 1960 and later, the retirement age will jump to 67.

The current Social Security rules allow American workers to start receiving benefits as early 62 years of age. However, they do so at a reduced amount. Meanwhile, if a worker waits to start taking any benefits until they are 70, they are given a higher benefit amount as a reward.

Trump Pledges To Protect Social Security

President-Elect Donald Trump made protecting Social Security a cornerstone of his successful 2024 presidential campaign. In fact, his official campaign platform promised to “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age.”

“Seniors should not pay tax on Social Security,” Trump wrote on Truth Social on July 31.

It remains to be seen how Trump taking office again will impact Social Security in the years to come.

The retirement age isn’t the only thing changing in 2025 when it comes to Social Security. The Social Security Administration is addressing inflation by lowering the cost-of-living adjustment from 3.4 percent to 2.5% percent. This will be the lowest cost-of-living adjustment in four years.

Also, in 2025, maximum taxable earnings will be increased from $168,000 to $176,100. Finally, in an effort to reduce wait-times, Social Security offices across the country are switching to appointment-based services.

“We want to make it clear that we will not turn people away for service who are unable to make an appointment or do not want to make an appointment,” the SSA said in a statement.

“For example, members of vulnerable populations, military personnel, people with terminal illnesses, and people with other situations requiring immediate or specialized attention may still walk in for service at our local offices,” the SSA added.

These changes are reportedly set to go into effect on January 6 of next year.

Key Takeaways: 

• The Social Security full retirement age is set to increase in 2025.
• Trump has promised to “protect Social Security and Medicare.”
• “Seniors should not pay tax on Social Security,” Trump said in July.

Sources: The Hill, CNBC, News Nation, Truth Social