Retirement dreams often center on age 65, but Social Security’s full retirement age (FRA) is shifting to 67 for those born in 1960 or later. This change, hitting in 2026, reshapes how Americans plan for retirement. Read on to learn what it means and how to prepare!
What Is the Full Retirement Age?
The full retirement age (FRA) is when you can claim Social Security benefits without a reduction. For those born in 1960 or later, it’s now 67, up from 65. Claiming earlier, as early as 62, cuts your monthly check, while delaying past 67 boosts it.
History of Social Security’s Retirement Age
Social Security began in 1935 with an FRA of 65. In 1983, Congress passed amendments to address funding concerns, gradually raising the FRA to 67 over decades. This shift, completed in 2026 for those born in 1960 or later, aims to match longer life expectancies and ensure solvency.
Why the Change Matters
This shift to 67 impacts millions. Retiring at 62 reduces benefits by up to 30%, affecting your long-term income. With 74 million Americans on Social Security, planning around the new FRA is crucial for financial security, especially for those with limited savings.
| Age | Benefit Reduction | Monthly Benefit Example ($1,000 FRA) |
|---|---|---|
| 62 | 30% | $700 |
| 65 | 13.33% | $866.70 |
| 67 | 0% | $1,000 |
| 70 | +24% | $1,240 |
How to Plan for the New Retirement Age
To navigate this change, consider these strategies:
- Delay Benefits: Waiting until 70 increases payments by up to 32%.
- Part-Time Work: Jobs at retailers like Costco offer income and health benefits.
- Save More: Boost 401(k) or IRA contributions to bridge income gaps.
- Tax-Smart Withdrawals: Use taxable accounts first to preserve retirement funds.
Key Facts and Stats
- 74 million Americans receive Social Security benefits.
- The FRA shift began in 1983 to address funding shortfalls.
- By 2033, the trust fund may only cover 77% of benefits without reforms.
- Delaying to age 70 can boost benefits by 24–32%.
- 1 in 3 younger boomers rely on Social Security for 90% of income.
| Birth Year | Full Retirement Age | Year FRA Applies |
|---|---|---|
| 1958 | 66 years, 8 months | 2024 |
| 1959 | 66 years, 10 months | 2025 |
| 1960+ | 67 | 2026+ |
Expert Tips for Maximizing Benefits
- Check Your Earnings Record: Ensure your Social Security record reflects your highest 35 earning years.
- Consider Health Costs: Medicare starts at 65, so plan for insurance if retiring early.
- Consult a Financial Advisor: Tailor your strategy to your lifestyle and goals.
- Stay Flexible: Be ready for potential future FRA increases to 68 or 69.
FAQs About Social Security’s FRA
What happens if I claim benefits before 67?
Your benefits are reduced by up to 30% if you claim at 62. Each month early cuts your check slightly.
Can I work and collect benefits?
Yes, but earnings above $23,400 in 2025 may reduce benefits before FRA. After FRA, no reductions apply.
Why did the FRA change?
The 1983 amendments raised it to address longer life expectancies and funding issues.
Should I wait until 70 to claim?
If you’re healthy and have other income, waiting maximizes benefits, adding 8% per year past FRA.
Conclusion
The shift to a 67 FRA changes the retirement game for millions. It’s not just about waiting longer—it’s about smarter planning. Build savings, consider part-time work, and weigh delaying benefits to secure your future. Share this post, talk to a financial advisor, or explore more retirement tips to stay ahead!