If you’ve always pictured retirement starting at 65 with morning coffee and no alarm clock, it’s time to rethink. Starting January 1, 2026, the Full Retirement Age (FRA) for Social Security benefits will officially become 67 for individuals born in 1960 or later. This change could significantly affect your retirement planning and monthly benefits.
Why Is the Retirement Age Increasing?
This change is the final phase of a policy passed in 1983 aimed at stabilizing the Social Security trust fund. The rationale was simple: as life expectancy increased, the number of years retirees draw benefits also grew—placing more financial stress on a system that currently supports over 67 million beneficiaries.
Back in the 1950s, most retirees lived into their mid-70s. Today, it’s common for retirees to reach their 80s or 90s, meaning 25–30 years of benefit payments. Without reforms like raising the retirement age, the system faced long-term insolvency.
Updated Full Retirement Age (FRA) by Birth Year
The FRA determines when you can collect your full Social Security benefits without any reductions. Here’s how it now breaks down:
Year of Birth | Full Retirement Age (FRA) |
---|---|
1943–1954 | 66 years |
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 or later | 67 years |
Retiring before reaching FRA will permanently reduce your benefits.
What Happens If You Retire Early?
You can choose to begin receiving benefits at age 62, but doing so comes at a cost:
- Monthly Reduction: Expect 25–30% less per month for the rest of your life.
- No Reversal: Returning to work won’t increase your benefits. Once locked in, the early-claim amount is permanent.
Choosing early retirement should be a carefully calculated decision based on your health, finances, and longevity expectations.
Delaying Retirement Pays Off
On the other hand, waiting beyond your FRA can pay off in a big way. For every year you delay up to age 70, your monthly benefit grows by approximately 8% per year.
Example
- FRA Benefit at 67: $2,000/month
- Benefit at 70: $2,480/month
- Annual gain: $5,760 — that’s substantial, especially over 20+ years.
How to Plan Ahead with SSA Tools
To take control of your retirement decisions, create a my Social Security account at SSA.gov. This tool allows you to:
- Estimate benefits at various retirement ages
- View the impact of early or delayed claiming
- Verify your earnings history for accuracy
Having accurate data can help you strategize the best time to retire for your lifestyle and financial goals.
The move to a 67-year FRA starting in 2026 isn’t just a policy update—it’s a significant change in how Americans approach retirement. Your decision to retire early, on time, or later will impact your lifetime income. Don’t wait until the last minute to plan—start assessing your options today so you can enjoy the retirement you’ve envisioned.
FAQs
Can I still retire at 65?
Yes, but if you were born in 1960 or later, retiring at 65 will result in reduced Social Security payments since your FRA is 67.
How much more will I get if I delay retirement until 70?
Your benefit can increase by approximately 8% per year after your FRA, up to age 70, resulting in significantly higher monthly checks.
Will the new FRA affect current retirees?
No, the change only applies to those born in 1960 or later. Current retirees will continue under the existing rules.