What's Happening
1 hour ago

Mark Zuckerberg Follows Elon Musk's Footsteps As Meta Reportedly Plans Major Investment Into AI-Powered Humanoid Robots

benzingabenzinga.com
2 hours ago

Do You Know How Long $1 Million Will Last If You Retire At 65? Here's A Hint – Longer Than You're Led To Think!

benzingabenzinga.com
2 hours ago

IRS Reportedly Gears Up To Lay Off Thousands Of Workers Elon Musk's DOGE Looks To Shrink The Tax Agency

benzingabenzinga.com
2 hours ago

TRADEPULSE POWER INFLOW ALERT: PALO ALTO NETWORKS INC. (PANW) MOVES UP OVER 5% AT ITS HIGH AFTER TRADEPULSE ALERT

benzingabenzinga.com
3 hours ago

Jeff Bezos-Backed Anthropic Fights US Proposal Blocking Google From Investing In AI Startups, Says It Would Benefit Rivals OpenAI, Mark Zuckerberg's M...

benzingabenzinga.com
4 hours ago

Trump Administration 'Unlikely' To Support TSMC's Control Of Intel's US Chip Factories: Report

benzingabenzinga.com
4 hours ago

Trump's 'Liquid Gold' Plan: Can He Really Make America Rich Again, or Do Oil Giants Hold the Real Power?

benzingabenzinga.com
5 hours ago

Elon Musk's Government Gig Has No Salary, No Job Title, And Plenty of Power

benzingabenzinga.com
6 hours ago

Why Altcoins Were Winning This Week

foolfool.com
6 hours ago

Russell Vought Orders Pause On All CFPB Activity, Critics Say This Gives Corporations 'The Green Light To Scam Families'

benzingabenzinga.com
6 hours ago

Prediction: Zillow Will Beat the Market. Here's Why.

foolfool.com
7 hours ago

$1000 Invested In Super Micro Computer 15 Years Ago Would Be Worth This Much Today

benzingabenzinga.com
7 hours ago

'We're Going To Find Billions' – Trump Targets Pentagon For Deep Spending Cuts

benzingabenzinga.com
7 hours ago

Here's How Much You Would Have Made Owning Meta Platforms Stock In The Last 10 Years

benzingabenzinga.com
7 hours ago

If You Invested $1000 In This Stock 15 Years Ago, You Would Have This Much Today

benzingabenzinga.com
7 hours ago

Why Siemens Stock Crept Higher on Friday

foolfool.com
7 hours ago

Here's How Much You Would Have Made Owning Regeneron Pharmaceuticals Stock In The Last 15 Years

benzingabenzinga.com
8 hours ago

This Magnificent Artificial Intelligence (AI) Stock Delivered Stellar Gains in 2024. It Can Jump Another 60%

foolfool.com
8 hours ago

Here's How Much You Would Have Made Owning American Tower Stock In The Last 20 Years

benzingabenzinga.com
8 hours ago

Why Federal Realty Investment Trust Stock Just Tanked by 6%

foolfool.com

Some People Born in 1959 Will Reach a Major Social Security Milestone in 2025

Those born in 1963 will finally become eligible to claim Social Security benefits in 2025 after 62 years of waiting. They won’t all choose to sign up then, but many will so they can receive as many checks as possible. It’s a major shift after paying into the program for your entire career. But they’re not the only ones reaching a significant Social Security milestone this year.

Those born in 1959 are also reaching an important age for Social Security benefits. For some, it may pass virtually unnoticed, while for others, it could bring big changes to their checks.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Two people looking at laptop in kitchen.

Image source: Getty Images.

Some people born in 1959 will reach their full retirement age (FRA) this year

The Social Security Administration assigns everyone a full retirement age (FRA) based on the year they were born. A few decades ago, FRA used to be 65. But the government slowly began raising it due to rising life expectancies. The following table shows the FRAs for most workers and retirees today:

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

Data source: Social Security Administration.

Most of those born in 1958 and earlier have already reached their FRA, but for the first time, some of those born in 1959 will reach this milestone. Many more will reach it in 2026.

Your FRA determines when you become eligible for your full Social Security benefit based on your work history. You don’t have to apply then, but the government uses this age as a baseline when deciding how to adjust your benefit depending on your claiming age.

If you claim benefits before your FRA, you lose 5/9 of 1% per month for up to 36 months. Those who apply even earlier lose another 5/12 of 1% per month. So those born in 1959 who claimed Social Security immediately at 62 get 29.2% less per check, compared to what they could have received if they’d waited until their FRA to apply.

Delaying benefits past your FRA is also an option, though it’s less common. If you were born in 1959 and wait until you qualify for your maximum benefit at 70 to apply, your checks would be worth 125.3% of what you’d get at your FRA.

What this means for those born in 1959

Understanding how your FRA affects the size of your checks is important whether you’re claiming benefits or not. If you haven’t applied yet, you can use your understanding of how your FRA influences your benefit amount to decide the best time for you to claim. Generally, you’ll get a larger lifetime benefit if you delay your application. However, this isn’t the case for those with short life expectancies, and it may not be feasible for those with little to no personal savings.

Those born in 1959 who are already claiming Social Security could see a change in their checks when they reach their FRA if they had any money withheld due to the earnings test in previous years. The earnings test automatically withholds some money from your checks if your income exceeds certain thresholds.

In 2025, you lose $1 for every $2 you earn over $23,400 if you’ll be under your FRA all year. If you’ll reach your FRA this year, you only lose $1 for every $3 you earn over $62,160 if you earn this much before your birthday. These limits were lower in past years.

When you reach your FRA, the government automatically recalculates your benefit to include the money it previously withheld under the earnings test. So it’s possible that you could get a boost to your checks in the month you reach your FRA. But how much of a boost depends on the amount the government withheld before.

If you have any questions about how your FRA could affect your Social Security benefit, it’s best to contact the Social Security Administration for personalized advice. You can do this online, by phone, or by making an appointment with your local Social Security office.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

Social Security is an essential piece to most American’s retirement plans. Without their monthly benefits, some 16.3 million seniors U.S, would be living below the

The average retirement age in the U.S. was 62 in 2023, but that number’s been slowly ticking up over time. Rising life expectancies and rising

While the stock market is still thriving, some investors may be feeling wary about the future. Spiking inflation could cause the Federal Reserve to shift

There are plenty of ways to become a millionaire, like starting a successful business, being a professional athlete, or becoming a movie star. For most