Social Security benefits are a critical aspect of retirement planning for millions of Americans. In 2025, individuals born in 1963 will finally become eligible to claim Social Security benefits at the age of 62. For many, this milestone marks the culmination of years of contributing to the program. However, they’re not the only group reaching significant Social Security milestones this year.
Big Changes for Those Born in 1959
People born in 1959 are also approaching an important milestone in 2025. Many will reach their Full Retirement Age (FRA), which is the age when they can claim their full Social Security benefit based on their work history.
The FRA for individuals born in 1959 is 66 years and 10 months, according to the Social Security Administration. Here’s a quick look at how FRA is determined for various birth years:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1943 to 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
For some, this milestone may go unnoticed, but for others, it could lead to significant changes in their Social Security checks.
What FRA Means for Social Security Benefits
Your FRA is a baseline for determining the amount of Social Security benefits you’ll receive. If you choose to claim benefits before your FRA, your monthly checks will be reduced. For example, individuals born in 1959 who began claiming benefits at 62 receive about 29.2% less per month than they would if they had waited until their FRA.
On the other hand, delaying benefits beyond your FRA results in larger checks. For individuals born in 1959, waiting until 70 to claim benefits means their monthly checks will be worth 125.3% of their FRA benefit.
What to Consider Before Claiming Benefits
Understanding how FRA impacts your benefits is key to deciding when to claim Social Security. Delaying benefits typically results in higher lifetime payments, especially for those with a longer life expectancy. However, delaying may not be practical for those with shorter life expectancies or limited savings.
Those already claiming Social Security benefits may see changes to their checks when they reach FRA if they previously had money withheld due to the earnings test.
How the Earnings Test Works
The earnings test reduces Social Security benefits for individuals who earn above a certain threshold while claiming benefits before FRA.
- In 2025, individuals under FRA lose $1 for every $2 earned over $23,400.
- For those reaching FRA in 2025, the earnings test reduces benefits by $1 for every $3 earned over $62,160 before their birthday.
Once you reach FRA, the government recalculates your benefit amount to include withheld earnings, potentially leading to higher monthly checks.
What This Means for Those Born in 1963
For those born in 1963, 2025 represents the first year they can claim Social Security benefits at the age of 62. While claiming early means smaller monthly checks, many choose this option to maximize the number of payments they receive over their lifetime.
Maximizing Your Social Security Benefits
Whether you were born in 1959, 1963, or any other year, understanding how FRA, the earnings test, and delayed retirement credits affect your benefits is essential. For personalized advice, it’s always a good idea to contact the Social Security Administration through their website, by phone, or by visiting a local office.
The $22,924 Social Security Bonus You Could Be Missing
Many retirees are unaware of strategies to boost their Social Security benefits. For example, a little-known method could increase your annual payments by as much as $22,924. Taking the time to understand these strategies can help you secure a more comfortable and confident retirement.
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Himanshu Sharma writes for The Octant, focusing on recruitment, government schemes, and current affairs. He is dedicated to making complex information accessible to readers.
Himanshu enjoys playing chess, hiking, and trying new recipes, always seeking ways to combine his love for writing with his passion for exploration.