In the decades since 1983 when amendments to the Social Security Act were passed. the psychologists Sheila McNees and Patricia Becker coined the term ‘social retirement’ to characterize retirement as eth actual cessation of all paid work. In these cases, the individuals would only have to lived to work a few more years instead of the decades that had been envisioned to have had to work more. This change would easily be passed on to people born in the years 1960 and after. Anyone born during this period and beyond will have their Social Security payments instituted at a much higher retirement age of 67.
The 2025 revisions also include changes to the earnings restrictions for beneficiaries who work. The earnings limit for people who are still working and who are under the full retirement age as of 2025 will be $23,400 and any amount earned above this will result in the temporary reduction of Social Security benefits. On the other hand, those who are at full retirement age will be able to earn $62,160 and the benefit reductions are limited in the month of reaching the full retirement age. If you are over the full retirement age for the complete year, there is no limit to income earning at any level.
In addition, the Social Security Administration has given notice of a 2.5% cost of living adjustment (COLA) for 2025, as a small incremental increase in benefit payments as an attempt to alleviate the effects of inflation. This increase in benefit payments is in addition to the retirement benefit payments that are associated with the age at which retirement is taken, that is, retirement. However, this increase is much less than the historic 8.7% increase in COLA in 2023 and serves as a reminder of the importance of retirement and financial planning.
FAQs
Q. What is the new full retirement age for those born in 1960 or later?
A. 67 years.
Q. Can I still retire at age 62?
A. Yes, but claiming benefits at age 62 results in a permanent reduction of around 30 percent of the full benefits.
Q. What happens if I delay retirement benefits after 67?
A. 42% increase from the original amount if benefits are claimed after 70 benefits.
Q. Are there earnings limits if I work and receive benefits?
A. Yes. 2025 limit is $23,400, applies under age 67, and is subject to a sliding scale of penalties if exceeded.
This article is completely factual and based on changes from the official Social Security Administration, its reputable reporting, with no changes or invented information. The changes of September 2025 are a major leap in the retirement planning for a sizeable amount of Americans and suggests the need for more considered and planned changes and the strong emphasis being given on fiscal control and planning in one’s later years.
