Starting January 1, 2026, the Social Security Administration (SSA) will raise the Full Retirement Age (FRA) to 67 for anyone born in 1960 or later. This marks the final step in gradual increases that began decades ago. Here’s what that means for your retirement planning.
Table of Contents
What is Changing?
For those born in 1960 or later, January 2026 means needing to reach age 67 to receive 100% of your Social Security retirement benefit. If you were born in the 1950s, FRA is already in transition (e.g., 66 years, 10 months for 1959 births).
Previously, many planned on retiring at 65, but this change will significantly affect your benefit eligibility if you’re part of the 1960+ cohort.
Overview
| Category | Details |
|---|---|
| Effective Date | January 1, 2026 |
| Who It Applies To | Individuals born in 1960 or after |
| New FRA | 67 years old |
| Earlier Retirement | As early as age 62, with permanent benefit reductions (≈ 30%) |
| Delayed Retirement | Up to age 70 with 8% annual increases post-FRA |
| SSA Planning Tools | “my Social Security” account and benefit calculators on SSA.gov |
| More Info | Official SSA site: ssa.gov |
Why It Happened?
This change dates back to the 1983 Social Security Amendments, which gradually raised FRA to strengthen the system’s finances amid longer life expectancies .
With people living longer, the SSA faced growing pressure to provide benefits over extended periods. Shifting the FRA helps maintain solvency without slashing existing benefits, spreads out the fiscal load, and encourages longer workforce participation.
FRA by Birth Year Timeline
- 1943–1954: FRA = 66 years
- 1955–1959: FRA = 66 years + 2–10 months (progressively increasing)
- 1960 or later: FRA = 67 years (starting Jan 1, 2026)
If you’re in the 1960+ group, retiring at 65 will result in receiving well below your full benefit.
Early vs. Timely vs. Late Retirement
Early Retirement (Age 62–66)
You can claim as early as age 62, but your benefit will be permanently reduced—by up to 30%. For example, a $1,500 FRA benefit could drop to around $1,050 per month.
Wait Until FRA (67)
Claiming at FRA means you’ll receive your full 100% benefit, with no reduction or increase.
Delay Beyond FRA (Up to 70)
Delaying benefit claims past FRA earns you delayed retirement credits—about 8% per year, up to age 70. For instance, postponing until 70 could boost a $2,000 benefit to approximately $2,480.
Tools to Help You Plan
The SSA offers useful resources:
- “my Social Security”: Check your FRA, earnings history, and benefit estimates tailored to your record.
- Benefit Calculators: Estimate early, FRA, and late benefits based on your earnings .
- Retirement Earnings Test Tool: Understand how working while receiving benefits could affect your payout before reaching FRA.
These tools allow you to model financial outcomes depending on different retirement ages.
Real-Life Impact
- Early Claiming: Ages 62–66 permanently reduced benefits—could mean losing up to 30% monthly.
- Reaching FRA (67): Unlocks full monthly benefit, maximizes payment right away.
- Delaying to 70: Gains up to a 24% boost over FRA benefits, which can significantly aid long-term security.
Picking the best age depends on individual health, savings, employment plans, and family needs.
Work beyond 62, and you’ll avoid permanent reductions—but claiming at FRA or later could mean receiving up to 8% more per year in benefits.
Why It Matters
Raising FRA to 67 is designed to:
- Help preserve Social Security’s finances amid changing demographics
- Encourage responsible retirement savings and delayed claims
- Reduce the program’s long-term cost burden per retiree
It’s a shift that emphasizes continued workforce participation and strategic retirement planning.
FAQs
Q1: Will I be affected by the change?
A = If you were born in 1960 or later, yes—your FRA is now 67, effective January 1, 2026.
Q2: Can I still retire early?
A = Yes—Social Security benefits can start as early as age 62, but they will be permanently reduced (around 30%).
Q3: What happens if I wait until after FRA?
A = Delaying retirement up to age 70 adds about 8% extra per year, which can meaningfully increase lifetime payouts.
