Starting January 1, 2026, Social Security will change the Full Retirement Age (FRA) to 67 for anyone born in 1960 or later. This means your “magic 65”–getting-full-benefits milestone is now a two-year delay. It’s a pivotal shift, with consequences worth planning for—especially if you’re nearing retirement or counting on that income.
Why This Matters: Understanding the New Full Retirement Age
The FRA is when you qualify for 100% of your Social Security benefits. Under current rules, those born before 1955 reach FRA between 66 and 66+10 months. But if you’re born in 1960 or later, your FRA is now set at 67—effective January 1, 2026.
With FRA moved back, claiming benefits at 65 or 66 will permanently reduce your monthly checks—up to 30% cut if taken at 62, the earliest age. Conversely, postponing past FRA—up to age 70—gains around 8% extra per year.
The Full Retirement Age (FRA)
Here’s a look at how FRA shifts depending on birth year:
| Year of Birth | Full Retirement Age |
|---|---|
| 1943–1954 | 66 years |
| 1955 | 66 years + 2 months |
| 1956 | 66 years + 4 months |
| 1957 | 66 years + 6 months |
| 1958 | 66 years + 8 months |
| 1959 | 66 years + 10 months |
| 1960 or later | 67 years |
If you were born in 1960 or later, you must reach 67—not 65—to receive full, unreduced benefits.
How This Affects You Financially
- Claiming early (age 62): Up to 30% permanent reduction
- Claiming at new FRA (67): 100% benefit
- Delaying from 67 to 70: ~8% increase per year, up to 124% total
Even a one-year delay can boost your lifetime income significantly, especially if you’ll be collecting for many years.
What You Should Do Now
Check Your FRA
- Create or log into your my Social Security account
- View your Earnings Record; gaps can reduce your benefits
- Under “Estimated Benefits,” note your FRA estimate
Compare Scenarios
- Compare benefit amounts at 62, your FRA, and 70
- Use online calculators to project different claiming ages and financial outcomes
Plan Around Take-Home Pay and Taxes
- Your other income sources and tax bracket may influence when it’s best to claim
- Delaying benefits can affect your Medicare eligibility, too
Strategic Planning Steps
- Set a calendar reminder for Jan 1, 2026—your new FRA date
- Review your my Social Security account, especially your earnings history
- Project your income needs—could working a bit longer offset early retirement?
- Factor health and longevity: If you’re in good health, delaying may pay off
- If unsure, consult a financial advisor for personalized advice
Things to Watch Out For
- Tax implications if you continue working and collecting benefits
- Spousal and survivor benefits, which depend on your FRA
- Medicare coverage timing may shift with your retirement filing date
- Legislative changes—Social Security rules may evolve, so stay alert
Social Security’s decision to raise the Full Retirement Age to 67 for 1960-born Americans is a major update worth planning around. Retiring at 65 will no longer qualify you for full benefits. While early filing is still possible, it comes with a steep 30% cut, whereas delaying your claim up to age 70 can significantly boost your lifetime income.
Make sure you:
- Check your FRA and projected benefits
- Understand the financial impact of different claiming ages
- Update your strategy based on your health, work plans, and retirement goals
This change impacts millions—plan now to ensure your retirement income aligns with your expectations.
FAQs
Can I still file at 65 or 66?
Yes, but filing before your FRA (now 67) permanently reduces your monthly payments.
What’s the maximum increase if I wait until 70?
You can get up to a 24% boost above your FRA benefit by delaying from age 67 to 70.
Should I delay claiming or start early?
Deciding depends on your health, income needs, and career plans. Use SSA tools and consult a financial planner for guidance.