One Social Security change every worker should make in 2025 to increase their benefits in the future

Retirement planning can be complicated, particularly in understanding one’s Social Security benefits. Another thing that usually slips through one’s mind is FRA, or Full Retirement Age. Understanding what FRA is and how it can impact your benefit is important when trying to make certain decisions for your retirement.

What is the full retirement age (FRA)?

FRA is the age in which you are eligible to receive your Social Security benefit based on your lifetime earnings. This age is different depending on the individual and is affected by your date of birth. For instance, if you were born in 1959, your FRA is 66 years and 10 months. For those born in 1960 or later, the FRA is 67. 

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How does claiming before FRA affect your benefits?

When you decide to claim your benefits early, you will lose some of your money. For example, if you claim your benefits at age 62, you will get a deduction of 30% of your benefits every month. This deduction will continue throughout the period you receive social security. 

Benefits of delaying your claim beyond FRA

On the flip side, delaying your Social Security claim beyond your FRA can increase your monthly benefits. For each year you delay, up to age 70, your benefit increases by approximately 8%. This means if your FRA is 67 and you wait until 70 to claim, you could receive a 24% increase in your monthly benefit. 

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Steps to determine your FRA and plan accordingly

Here are the steps you can take: 

• Identify your FRA: Hit the Social Security Administration website to learn just what your particular FRA is to the year of your birth.

• Check your finances: Study matters like savings, health, and retirement goals to decide the time best for applying for benefits.

• Take financial guidance: Being well-informed on the subject makes it possible to give the best recommendation for such situations so that you can truly enjoy your benefits.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Consult with a financial advisor for guidance tailored to your situation

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