Along with adjusting to the other Social Security changes coming next year, working Americans may have to push back their plans as the retirement age is set to increase in 2025.
Social Security benefits are undergoing several changes in 2025, including an increase in retirement age.
Dreamstime/TNS/TNSThe retirement age, which determines how old beneficiaries must be before collecting their Social Security benefits, will increase to 67 for anyone born after 1960.
Those born between May 2, 1958, through Feb. 28, 1959, will reach the full retirement age in 2025, according to AARP.
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Americans can choose to begin collecting benefits at age 62 before reaching the full retirement age, but benefits are reduced. However, those who wait to collect their benefits are eligible for delayed retirement credits, which increases monthly benefits, according to the Social Security Administration.
In addition to a change in the retirement age, Americans will see a 2.5% increase in their Social Security benefits and Supplemental Security Income payments starting in January, the Social Security Administration announced in October. So, beneficiaries can expect to see around an additional $50 added to their retirement benefits starting next month.