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.

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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:

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.