The Biggest Social Security Benefit at Full Retirement Age (FRA) in 2025 – What You Should Know

Social Security’s full retirement age (FRA) will rise to 66 years and 10 months in 2025, just shy of its final increase to 67 in 2026 for individuals born in 1960 or later. Alongside this shift, a 2.5% cost-of-living adjustment (COLA) will raise benefits for all recipients, including an all-time high maximum benefit at FRA. Here’s what you need to know about these changes and how they could affect your retirement plans.

Maximum

For the first time, the maximum benefit at FRA will cross $4,000 per month in 2025:

• 2024 Maximum at FRA: $3,822 per month
• 2025 Maximum at FRA: $4,018 per month

Retirees who delay benefits beyond FRA can earn even larger checks. For instance:

• Waiting until age 67 (just two months beyond FRA) increases monthly benefits to $4,071.
• Delaying until age 70 adds another 24% (plus future COLAs), pushing benefits to at least $5,048 per month.

Reaching the Maximum

Despite these impressive numbers, most retirees won’t achieve the maximum benefit. Here’s why:

1. Work at Least 35 Years: The Social Security Administration (SSA) uses your 35 highest-earning years to calculate benefits. Any missing years count as zero, reducing your average earnings and your benefit.
2. Earn Maximum Taxable Income: To qualify for the maximum, you must consistently earn the maximum taxable income (set at $176,100 in 2025) for 35 years.

If you don’t meet these requirements, you can still take steps to boost your benefit:

• Increase your income through raises, overtime, or a higher-paying job.
• Delay benefits to allow for larger monthly checks.

Growth

Delaying Social Security offers a compelling financial advantage for those with longer life expectancies. Here’s how benefits increase over time:

Delaying Benefits	FRA of 66 years, 10 months	FRA of 67 years
5% per year (5/12 of 1%/month)	From 62 to 63 and 10 months	From 62 to 64
6.67% per year (5/9 of 1%/month)	From 63 and 10 months to FRA	From 64 to 67
8% per year (2/3 of 1%/month)	From FRA to 70	From FRA to 70

These increases make delaying an attractive option for retirees with sufficient savings to cover expenses in the interim. However, if you have health concerns or immediate financial needs, claiming earlier might still be the right choice.

Benefits

Delaying benefits can maximize lifetime income, especially if you expect to live into your 80s or beyond. For high earners, this strategy also enhances survivor benefits, ensuring a spouse receives a larger benefit in the event of your passing.

However, consider other factors such as taxes. Social Security income can be taxable depending on your total retirement income, so planning strategies like Roth conversions before claiming may help reduce your tax burden.

The decision of when to claim depends on your health, financial situation, and long-term goals. Knowing the new Social Security changes for 2025 will help you make an informed choice.

FAQs