Recent developments surrounding Social Security age limits involve two key areas: The rise in the full retirement age for retirement benefits that took effect this year, and a proposed change to disability benefit eligibility under the Trump Administration.
For individuals born in 1959, the full retirement age increased to 66 years and 10 months starting in 2025. This marked the second-to-last step in the decades-long transition from age 65 to 67. Those born in 1960 or later will reach the final FRA of 67, effective in 2026. For individuals turning 62 in 2026 or later, the full retirement age is therefore permanently set at 67, rather than 65.
Nearly 4 million Americans turn 65 in 2025, part of the Baby Boomer wave that is straining Social Security. The FRA rising to 66 years and 10 months for those born in 1959 (effective November 2025) directly affects about 1.5 million people, and may cause many to delay full benefits or accept reductions (up to 30% if claimed at 62).
Claiming benefits before FRA still reduces monthly payments, while delaying benefits until age 70 increases them by up to 8% per year.
According to Social Security data, the maximum monthly benefit at FRA in 2024 was $3,822, compared with $2,710 if claimed at 62.
The new FRA milestone changes everything for retirement planning, prompting some workers to build cash reserves or explore part-time income options to delay claiming Social Security.
A September 2025 bipartisan bill, the Claiming Age Clarity Act, proposes renaming “full retirement age” to “minimum monthly benefit age” for better public understanding, though it would not change any age thresholds.
The Trump Administration is also advancing a proposal to adjust how Social Security Disability Insurance evaluates age in determining eligibility. Currently, older workers, particularly those 55 and older, are more likely to qualify based on reduced ability to adapt to new work.
The new plan would either raise the qualifying age to 60 or eliminate age as a factor entirely. According to an analysis cited by The Washington Post on Oct. 5, this change could affect up to 750,000 individuals over the next decade.
SSA Commissioner Frank Bisignano said everything’s being considered, including broader retirement age increases, but there is no timeline yet for implementation.
While not tied to age, several related adjustments affect Social Security in 2025 and 2026:
- Workers under FRA can earn up to $23,400 before benefits are reduced; for those reaching FRA this year, the limit rises to $62,160.
- The taxable wage cap increased to $176,100 for 2025. Beneficiaries received a 2.5% cost-of-living adjustment this year, and the 2026 COLA is expected to be about 2.7%.
The US Bureau of Labor Statistics has confirmed that, despite the ongoing government shutdown, its September Consumer Price Index report will be released Oct. 24, data that is the basis for Social Security to calculate the 2026 COLA for nearly 75 million Americans. BLS said it recalled furloughed workers to produce the CPI, noting that “this release allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits.”
If the 2.7% increase is finalized, the average monthly benefit would rise from $2,008 to $2,062, an increase of roughly $54 per month. Those born between the first and 10th of any month will receive their January 2026 payment on Jan. 14, those born between the 11th and 20th on Jan. 21, and those born after the 21st on Jan. 28. Individuals who have received Social Security since before May 1997 will get their first 2026 payment on Jan. 3, and Supplemental Security Income recipients will receive theirs on Dec. 31, 2025, due to the New Year’s holiday.
While the full retirement age is now essentially fixed at 67 for all future retirees, ongoing policy discussions continue about raising it even higher – possibly to 69 or 70 – to preserve the Social Security trust fund, which is projected to face depletion around 2035.
No formal legislation has advanced this year, but the conversation may intensify as fiscal pressures mount.
4 thoughts on “Social Security update for 2025: New retirement age kicks in, disability reforms proposed”
At 59, I’d settle for them to pay me one lump sum of what I’ve already contributed. Likely not going to happen though. Rather, Lisa and her cohorts are stealing us blind as they get a preferred pension and health care!
The boomers got theirs and then pulled the ladder up behind them
And, it was a smart move to do that.
Rob B above, I agree. A system so abused by Washington. Then Medicare is extortion. High premiums you are forced to pay, horrible coverage forcing you to buy secondary insurance, and then no way to opt out unless you are filthy rich enough to pay cash for healthcare and forfeit your social security.