As 2025 approaches, millions of Americans, including around 6 million people in California, will become eligible for Social Security benefits. Some will also reach their full retirement age, which is increasing in 2025. If you’re planning your retirement, understanding when to claim Social Security benefits can make a significant difference in your monthly payments.
When Can You Begin Receiving Social Security Benefits?
You can begin claiming Social Security benefits as early as age 62. However, starting at this age will mean you won’t receive the full amount you’re entitled to. While you can also begin withdrawing from tax-advantaged retirement accounts like 401(k)s and IRAs at age 59½ without facing a 10% penalty tax, claiming Social Security early results in a reduced monthly benefit.
What is Full Retirement Age for Social Security?
Your monthly Social Security checks will increase if you wait until your “full retirement age” to claim benefits. This full retirement age has gradually risen over the years and is determined by your birth year. Initially set at 65, Congress passed a law in 1983 to raise the threshold to account for longer life expectancies.
Can You Wait Until After Full Retirement Age to Claim Benefits?
If you wait past your full retirement age to begin claiming benefits, your monthly check will continue to grow by 8% per year until age 70. For instance, someone who filed for Social Security at age 62 in 2024 could receive up to $2,710 monthly. If they waited until their full retirement age, they would receive a maximum of $3,822. If they held off until age 70, they could receive up to $4,873.
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What is Full Retirement Age in 2025?
For those born between May 2, 1958, and February 28, 1959, their full retirement age will be reached in 2025. Here are the full retirement ages based on birth year:
- 1955: 66 years and 2 months
- 1956: 66 years and 4 months
- 1957: 66 years and 6 months
- 1958: 66 years and 8 months
- 1959: 66 years and 10 months
- 1960 and later: 67 years old
What is the Social Security COLA for 2025?
Social Security payments will also see a 2.5% increase in 2025 to account for cost-of-living adjustments (COLA). This is the smallest increase in three years, down from the 3.2% raise in 2024. As a result, the average monthly payment for beneficiaries will rise by $50, from $1,907 in January 2024 to $1,957 in 2025.
When Do Social Security and SSI Checks Go Out in 2025?
Social Security checks are distributed on a Wednesday each month, based on the recipient’s birthday. SSI checks are issued on the same day for all recipients. Due to the calendar schedule, January 2025 SSI checks will be sent on December 31, 2024.
As the new year approaches, retirees in California and across the country should stay informed about these changes to maximize their Social Security benefits.
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