The rules for collecting Social Security are changing again — and this time, it affects nearly everyone nearing retirement.

Starting next year, full retirement age (FRA) will rise once more, altering how millions of Americans claim their benefits.

And the timing of your decision could make or break your monthly income.

Why the Retirement Age Is Rising Again

Beginning in 2025, Americans born in 1959 will need to reach 66 years and 10 months to claim their full Social Security benefits. For anyone born in 1960 or later, the full retirement age officially becomes 67.

The change isn’t new — it’s part of a phased law passed back in the 1980s to help stabilize the Social Security system as Americans live longer and collect benefits for more years. But for those approaching retirement now, this adjustment is no small detail.

It means anyone who claims benefits early — as soon as age 62 — will see a steeper reduction in monthly payments than retirees from earlier generations. Conversely, waiting beyond full retirement age still boosts payments by about 8% per year up to age 70.

Financial advisors say this new phase of adjustments makes it essential for older workers to rethink their timelines and coordination strategies.

“This change may look small, but it compounds over a lifetime,” said one retirement planner. “When to claim Social Security is now one of the most critical financial decisions Americans will make.”

Timing, Spouses, and the Long-Term Strategy

The higher full retirement age means more Americans are weighing tradeoffs between retiring early and maximizing long-term income. A worker who starts collecting at 62 could receive 25% to 30% less per month for life than someone who waits until full retirement age.

Spousal benefits also play a major role in these decisions. Couples can coordinate claiming times so one partner delays benefits to lock in a higher survivor payment, while the other draws earlier for current income.

For many, continuing to work part-time during the gap years offers flexibility — helping bridge the delay while allowing Social Security benefits to grow. But those who work before reaching full retirement age must monitor the earnings limit, which can reduce benefits if income exceeds annual thresholds.

Advisors recommend running projections through the official Social Security calculator or consulting a planner before filing. Even small adjustments — waiting six months, delaying spousal claims, or pairing benefits with 401(k) withdrawals — can change a retirement outlook dramatically.

“This is a great time to step back and coordinate all your income sources,” another advisor said. “Social Security, investments, pensions, and part-time work should all fit together like puzzle pieces.”

The key takeaway: the later full retirement age isn’t meant to punish retirees — it’s designed to preserve the system and encourage longer working lives. But it places greater responsibility on individuals to plan wisely.

Those nearing their 60s should treat 2025 as a call to action. Reviewing benefit estimates, updating retirement timelines, and building strategies for longevity can make the difference between struggling and thriving later in life.

Social Security may be changing — but with smart planning, your future security doesn’t have to.