As 2025 approaches, Social Security recipients in California and across the U.S. will face changes, particularly regarding the full retirement age.
The full retirement age is the age at which you can begin receiving your full Social Security benefits without any reduction. Understanding how these changes will affect you is crucial for proper retirement planning.
Here’s everything you need to know about the Social Security full retirement age in 2025 and what it means for Californians.
What is Full Retirement Age?
Full retirement age (FRA) is the age at which individuals are entitled to receive 100% of their Social Security benefits.
The Social Security Administration (SSA) has been gradually increasing this age to reflect longer life expectancies.
- FRA for people born before 1938: 65 years.
- FRA for people born in 1960 and later: 67 years.
In 2025, the FRA will apply to individuals born between May 2, 1958, and February 28, 1959, marking the next milestone in the transition to 67 years as the standard full retirement age.
Full Retirement Age in 2025: Key Dates
Here’s a breakdown of the full retirement ages for people born from 1955 to 1960 and later:
| Birth Year | Full Retirement Age |
|---|---|
| 1955 | 66 years, 2 months |
| 1956 | 66 years, 4 months |
| 1957 | 66 years, 6 months |
| 1958 | 66 years, 8 months |
| 1959 | 66 years, 10 months |
| 1960 & Later | 67 years |
As you can see, individuals born in 1960 or later will have to wait until 67 years of age to receive full benefits.
Can You Start Receiving Benefits Before Your Full Retirement Age?
Yes, you can start receiving Social Security benefits as early as age 62, but your monthly payments will be reduced. The reduction depends on how many months before your full retirement age you begin claiming benefits.
For example, if you claim benefits at 62 (the earliest possible age), your benefits will be reduced by about 30%. However, this may be a good option if you need the money sooner rather than later.
Delaying Benefits After Full Retirement Age
If you delay claiming your Social Security benefits beyond your full retirement age, your monthly payments will continue to grow. For every year you delay until age 70, your benefits will increase by 8% per year.
For instance, if your full retirement age is 66, and you wait until age 70 to claim, you could receive 32% more in benefits than if you had started at 66.
This can make a significant difference, especially considering that Social Security is often a key source of retirement income.
What is the Social Security COLA for 2025?
The Cost-of-Living Adjustment (COLA) for 2025 will see a 2.5% increase, according to the SSA. This is a smaller increase compared to the 3.2% COLA granted in 2024 but still significant for retirees who rely on Social Security for their monthly income.
- 2025 Average Monthly Payment: $1,957 (up from $1,907 in 2024).
- Increase: $50 for the average beneficiary.
This COLA helps keep pace with inflation, ensuring that your benefits maintain their purchasing power.
When Will Social Security Checks Be Sent in 2025?
Social Security checks are typically sent on the second, third, or fourth Wednesday of each month based on the recipient’s birthday.
For Supplemental Security Income (SSI) recipients, payments are sent on the first of each month. However, January 2025 SSI checks will be issued on December 31, 2024, due to a scheduling quirk.
Here’s a general breakdown of the payment schedule:
| Payment Date | Recipient’s Birth Date |
|---|---|
| 2nd Wednesday | 1st-10th of the month |
| 3rd Wednesday | 11th-20th of the month |
| 4th Wednesday | 21st-31st of the month |
As we approach 2025, many in California and across the nation will face changes to their Social Security benefits, particularly regarding full retirement age.
Understanding when you are eligible to start receiving full benefits—and the impact of waiting longer to claim—can significantly impact your financial future.
The 2.5% COLA increase and the option to delay benefits until age 70 for higher payments give Social Security recipients in California important decisions to make as they plan for retirement. Make sure to stay informed, and consult with financial experts to make the most of your benefits.
FAQs
When will my full retirement age change?
If you were born between May 2, 1958, and February 28, 1959, your full retirement age will be 66 years and 10 months in 2025.
How much will my benefits increase if I delay retirement?
For every year you delay beyond your full retirement age, your benefits increase by 8% until you reach age 70.
How is the 2.5% COLA increase calculated for 2025?
The 2.5% COLA is based on the increase in the Consumer Price Index (CPI), which tracks inflation and adjusts Social Security benefits accordingly.
