According to Investopedia, the average retirement age was 65, but a law passed in 1983 increased that number due to the rise in American life expectancy. The full retirement age continues to grow this year, but that figure is primarily based on a person’s birth year.

Here’s everything you need to know about the increased retirement age and how it could impact your retirement plans and monthly Social Security checks.

What is the full retirement age in 2025?

The full retirement age is when Americans can claim their full Social Security benefits after working extensively.

For example, the later a person is born, the age of their retirement increases, according to Investopedia.

If you were born in 1958, your FRA is 66 years and eight months.

If you were born in 1959, your FRA is 66 years and 10 months.

If you were born in 1960 or later, your FRA is 67 years.

The amount in Social Security benefits varies based on age and when someone decides to retire. According to the Social Security Administration website, if a person files for the benefits before their full FRA, their funds can be reduced by 30%, depending on how many years before that age they start to claim.

Alternatively, if someone waits until after their FRA to claim benefits, they could increase by 8% annually until they reach age 70. According to Investopedia, those willing to wait until that age to claim their full benefits could see a 32% increase in their monthly checks.

When is the best time to claim?

Stephanie McCullough, founder and financial planner at Sofia Financial, said there’s still some uncertainty on the Social Security benefits based on the age we’ll die. However, some people close to retirement may be unsure when to claim their benefits.

“Waiting until 70 certainly has its benefits: a higher initial monthly payment, which means greater cost-of-living (inflation) adjustments (since they are a percent), and one that people may overlook is higher survivor benefits for the surviving spouse, if applicable,” McCullough told the outlet. “Even if the higher-earner in a couple may not live terribly long, their benefit amount will determine how much the widow(er) receives for the remainder of their life, which can have a big impact over the years.”

According to McCullough, based on their individual needs, there is no right or wrong way to claim benefits, whether someone wants to claim earlier in age or wait until they are in full FRA.

How can the Social Security change affect recipients?

The age at which someone can claim their full Social Security benefits depends on their FRA, which varies based on their birth year. This number can also directly impact their financial planning.

-Over 62: Those approaching retirement can check their FRA to consider whether to claim benefits early or wait for a larger payout.

-Under 60: Relaxing retirement expectations could help determine if someone needs to delay retirement or reevaluate their savings.

-Delaying increases your benefits: The longer someone waits to claim their full Social Security benefits, they will have a substantially larger monthly payment.