In the United States, Social Security has been helping retirees and disabled workers for many decades. The program is managed by the Social Security Administration (SSA) and plays a big role in the financial planning of millions of Americans.
In 2025, if you are planning to retire, your monthly benefit will depend on two main things—your work history and the age at which you retire, called the Full Retirement Age (FRA). Let’s take a closer look at how Social Security payments are calculated, how much you can get, and why waiting longer to retire can increase your benefit.
What Is Full Retirement Age (FRA) in 2025?
The Full Retirement Age (FRA) is the age at which you become eligible to receive 100% of your Social Security benefit. For people born in 1958, the FRA is 66 years and 8 months. If you were born in 1960 or later, your FRA is 67 years.
So, if someone born in 1958 chooses to retire at 67 in 2025, they will be retiring 4 months later than their FRA. This delay will increase their monthly benefit by 2.67%, as the SSA gives 0.6667% extra for each month you wait beyond FRA.
Why the Maximum Social Security Payment Is Different for Everyone
The maximum monthly Social Security benefit depends on:
- The year of birth
- The retirement age
- Your earnings history
- The annual Cost-of-Living Adjustment (COLA)
For example:
- The maximum benefit in 2025 at FRA is $4,018/month (for those born in 1960 or later)
- For someone born in 1958, the max benefit is about $3,924/month
These amounts are possible only if the worker earned the maximum taxable income (currently $168,600/year) for at least 35 years. The SSA uses a special formula that adjusts your past earnings to today’s standards, adds COLA increases, and calculates your average.
In 2025, the COLA is 2.5%, which slightly raises benefits from around $1,927/month to $1,976/month.
How Delaying Retirement Increases Your Monthly Benefit
Delaying retirement beyond your FRA gives you something called delayed retirement credits, which increase your benefit by 8% for each year you wait, until age 70.
Let’s look at an example.
Example: George’s Social Security Benefit Increases Based on Retirement Age
George (imaginary example) is a worker born in 1960. His FRA is 67, and here’s how his monthly benefits would change depending on when he retires:
- Age 62 (earliest possible): $1,500/month (about 25% less than full)
- Age 63: $1,608/month
- Age 64: $1,716/month
- Age 65: $1,824/month
- Age 66: $1,932/month
- Age 67 (FRA): $2,040/month
- Age 68: $2,203/month (8% increase)
- Age 69: $2,367/month
- Age 70: $2,530/month (maximum benefit in George’s case)
So if George waits until age 70, he’ll receive $1,030/month more than if he retired at 62—a 68% increase.